Debt Settlement Agreement
Creditor-debtor contract resolving outstanding obligations through reduced payment arrangements, including settlement amounts, payment schedules, release terms, and confidentiality for debt resolution.
Key Clauses
Whereas
Provides background context for debt dispute and establishes settlement negotiation rationale.
Settlement Amount
Specifies reduced payment amount accepted in full satisfaction of outstanding debt obligation.
Payment Terms
Details payment schedule, method, and timeline for settlement amount delivery.
Release
Mutual release of claims and obligations related to original debt and settlement arrangement.
Confidentiality
Restrictions on disclosure of settlement terms and debt resolution details to third parties.
No Assignment
Prevents transfer of settlement rights or obligations to third parties without consent.
Use This Template
When You Need This
- Resolving outstanding debts through negotiated payment reduction with creditors
- Settling collection accounts or charged-off debts for less than full balance owed
- Avoiding bankruptcy by negotiating manageable debt resolution with multiple creditors
- Creating payment plan for debt settlement while protecting credit and financial reputation