The purpose of writing a formal agreement letter for debt settlement is to have a written confirmation of what has been discussed verbally with your creditor for settling the debt. This is an important document and must be drafted with precision. Given below is a format example which you can use for creating a personalized letter.
Debt Settlement Agreement Letter Format
ABC Corporation Pvt. Ltd. and Robert Mathew hereby agree to compromise the debt amount under the stated below terms and conditions:
ABC Corporation Pvt. Ltd. and Robert Mathew, both the parties agree that the outstanding debt is $ 50,000 (Dollar Fifty Thousand Only). Moreover, the parties have agreed that ABC Corporation Pvt. Ltd. will accept a sum of $ 30,000 (Dollar Thirty Thousand Only) which will be considered as full payment. Acceptance of this payment will be considered as a complete discharge of all the due bills so far and ABC Corporation Pvt. Ltd. will not take any further actions on collecting on the alleged debt. The payment will be made once the agreement is complete. They payment will be made either in cash or in cheque.
The validity of this agreement will be till 31st July, 2016 and will be treated as null and void if the debtor fails to make the payment within this period and status will stand as due.
On making successful payment of the mentioned amount, ABC Corporation Pvt. Ltd. agrees to delete any negative information that it might have mentioned on Robert Mathew’s credit report. Moreover, ABC Corporation Pvt. Ltd. also agrees never to place any such negative information on credit report of the debtor in future.
Both parties have agreed to abide by the rules and regulations stated in the agreement and it will stand to benefit both the parties and their successors.
Date: 6th July, 2016
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