Debt Settlement Agreement
This Debt Settlement Agreement ("Agreement") is entered into as of [Date], by and between [Debtor's Name], with a mailing address at [Debtor's Address] ("Debtor"), and [Your Name], with a mailing address at [Your Company Address] ("Creditor").
I. Introduction
This Agreement sets forth the terms and conditions agreed upon between the Debtor and the Creditor to resolve the outstanding debt owed by the Debtor to the Creditor.
II. Recitals
WHEREAS, Debtor owes a debt to Creditor in the amount of [Amount] ("Debt"); and
WHEREAS, the Debtor and Creditor desire to settle the Debt under the terms and conditions set forth herein.
III. Agreement to Settle Debt
3.1 Settlement Amount: The parties agree that the Debtor shall pay the sum of [Settlement Amount] to the Creditor in satisfaction of the outstanding debt.
3.2 Payment Schedule: The Settlement Amount shall be paid by the Debtor to the Creditor according to the following schedule:
(a) Number of Installments: The Settlement Amount of [Agreed Settlement Amount] shall be paid in 3 equal installments.
(b) Installment Amount: Each installment shall be [Amount].
(c) Due Dates: The due date for each installment payment shall be the 1st day of each month, starting from [start date], with the final installment due on [end date].
(d) Late Payment: Failure to pay within 10 days of the due date constitutes a default.
(e) Early Payment: Debtor may make early payments without penalty.
(f) Confirmation: The creditor shall provide written confirmation upon receipt of each payment.
(g) Modification: Any changes to the payment schedule require written agreement by both parties.
3.3. Form of Payment: Payments shall be made via Electronic Funds Transfer (EFT) or Cash Payment.
IV. Release and Discharge
Upon receipt of the Settlement Amount in full, the Creditor agrees to execute and deliver to Debtor such documents as may be necessary to evidence the release and discharge of the Debt, including any necessary lien releases or satisfactions of judgment.
V. Representations and Warranties:
5.1 Authority: Each party represents and warrants that it has the full power and authority to enter into and perform its obligations under this Agreement.
5.2 Accuracy of Information: Each party represents and warrants that all information provided in connection with this Agreement is true, accurate, and complete to the best of its knowledge.
VI. Confidentiality
The parties agree to keep the terms and conditions of this Agreement confidential and not to disclose them to any third party, except as required by law or with the prior written consent of the other party.
Governing Law
This Agreement shall be governed by and construed by the laws of [State/Country], without regard to its conflicts of law principles.
Entire Agreement
This Agreement constitutes the entire agreement between the parties regarding the settlement of the debt and supersedes all prior negotiations, agreements, and understandings, whether oral or written.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[Debtor's Name]
Debtor
[Date Signed]
[Your Name]
Creditor
[Date Signed]
Agreement Templates @ Template.net
