DEBT SETTLEMENT AGREEMENT
THIS AGREEMENT is made on [Date],
BETWEEN:
[Creditor Name], of [Creditor Address] (“Creditor”),
AND
[Debtor Name], of [Debtor Address] (“Debtor”).
WHEREAS
- The Debtor is indebted to the Creditor in the amount of [Original Debt Amount] (the “Debt”);
- The parties wish to settle the Debt on the terms set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:
1. SETTLEMENT AMOUNT
1.1 The Creditor agrees to accept the sum of [Settlement Amount] (the “Settlement Amount”) as full and final settlement of the Debt.
1.2 Upon receipt of the Settlement Amount, the Creditor will consider the Debt fully satisfied and will release the Debtor from any further liability relating to the Debt.
2. PAYMENT TERMS
2.1 The Debtor shall pay the Settlement Amount as follows:
- Payment Method: [Payment Method, e.g., bank transfer, check]
- Payment Due Date(s): [Payment Due Date(s) or Payment Schedule]
- Payable to: [Creditor’s Payment Details]
2.2 If the Debtor fails to pay the Settlement Amount in full by the agreed date(s), this Agreement may be void at the Creditor’s discretion, and the original Debt may become immediately due and payable.
3. RELEASE
3.1 Upon full receipt of the Settlement Amount, the Creditor releases and forever discharges the Debtor from all claims, demands, and causes of action relating to the Debt.
3.2 The Debtor acknowledges that the Settlement Amount is paid as a compromise and is not an admission of liability.
4. CONFIDENTIALITY
4.1 The terms and existence of this Agreement shall be kept confidential by both parties, except as required by law or as necessary to enforce this Agreement.
5. NO ASSIGNMENT
5.1 Neither party may assign or transfer their rights or obligations under this Agreement without the prior written consent of the other party.
6. ENTIRE AGREEMENT
6.1 This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior discussions or agreements.
7. AMENDMENTS
7.1 No amendment or modification of this Agreement shall be valid unless made in writing and signed by both parties.
8. GOVERNING LAW
8.1 This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country].
9. NOTICES
9.1 Any notice required or permitted under this Agreement shall be in writing and delivered to the addresses stated above or to such other address as either party may designate in writing.
10. SEVERABILITY
10.1 If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
11. COUNTERPARTS
11.1 This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Disclaimer
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
SIGNATURES
Creditor:
Name: [Creditor Name]
Signature: ___________________________
Date: [Date]
Debtor:
Name: [Debtor Name]
Signature: ___________________________
Date: [Date]
