Example Debt Settlement Agreement

If you are considering or are already in the midst of trying to settle your debt by negotiating with your credit card company then it is important that you understand the basics of a debt settlement agreement similar to one your creditor may use. A great way to learn is by studying an example debt settlement agreement.


Below I have provided a debt settlement agreement template for you to study as an example of one a credit card company might use. You may want to take a look at this in one browser and in the other have the article on the basics of a debt settlement agreement in another. Having both these debt settlement resources out at the same time could prove very helpful.

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Debt Settlement Agreement

Date:

Particapating parties of this Debt Settlement Agreement are defined below:

Debtor(s) - Betty Broke

Creditor  - Monster Man Credit Card, Inc.

The Debtor and Creditor have negotiated and now agree to settle the Debtor(s) financial obligation to the Creditor under the following conditions and terms.

The Debtor and Creditor both agree that the financial obligation is a current outstanding debt in the amount of $ENTER AMOUNT$. Both Parties agree that the Creditor will accept a one time payment in the form of a check for the amount of $ENTER AMOUNT$ as a settlement of the debt in full. The Creditor agrees to this compromise under the condition that the payment is recieved on or before the date of #ENTER-DATE#.

If the Debtor fails to make the payment in full by the specified date of #ENTER-DATE# the Creditor will immediately demand the original full amount of the debt to be paid from the Debtor.

This debt settlement agreement shall be binding upon the debtor, Creditor, their assignes, and successors.

The particapents have agreed to settle finally and forever all claims between them of any kind or purpose what so ever damage or liability known or unknown of any sort.

The Particapants agree that the conditions and terms of this agreement have been previously discussed and negotiated between one another and serve as a final accord and satisfaction concerning all diputes between them.

This debt settlement agreement is contingent upon the Creditors recipt of the final payment of $ENTER AMOUNT$ by the date of #ENTER-DATE#.

Unless to enforce this agreement both parties agree not to bring any claim against the other concerning any matter released by this agreement. Additionaly each party agrees bthis agreement acts as a bar to any future claim.

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Please keep in mind that I am not a lawyer and nothing on this blog could possibly be considered legal advice. Though I try to be helpful, accurate, and correct when providing information on topics you should always realize that it could be false just like any other informative resource that exists. There, now you have your disclaimer.

If you get an offer from your creditors to settle your debt be sure you read the agreement and make sure are able to understand what it is your reading.