Debt settlement by instalments agreement template (US)

Debt Payment Plan Agreement

This Agreement is made on Effective Date between Creditor Name at Creditor Address ("Creditor") and Debtor Name at Debtor Address ("Debtor").

1. The Debt

Debtor agrees that as of this date it owes Creditor $Total Debt for Source of the Debt and Account Number, if any. This statement may restart the time limit for suing on the debt under state law.

2. Payment Plan

Debtor will pay Amount to Be Paid in Words dollars ($Amount to Be Paid) as follows:

| Payment | Due Date | Amount |

| --- | --- | --- |

| First | First Payment Date | $First Payment Amount |

| Then each Payment Frequency | Starting on Next Payment Date | $Regular Payment Amount |

| Final | Final Payment Date | $Final Payment Amount |

Payment goes to Payment Place or Method. Debtor may prepay at any time without a penalty.

3. Interest

The plan bears interest at Interest Rate or 0% per year. This rate must not exceed the limit set by state usury law. If this is a consumer credit plan, the Truth in Lending Act or state law may require added disclosures.

4. Discount and Release

If the amount to be paid is less than the Debt, then when all payments have been made on time, Creditor accepts them in full satisfaction and releases the remaining $Forgiven Amount or None. Within Release Days days after the final payment, Creditor will confirm in writing that the Debt is paid, and will update any credit bureau report as needed. Forgiven debt can be taxable income, and some creditors must report it on Form 1099-C.

5. Late Payment

If a payment is more than Grace Days days late, Creditor will give written notice and Debtor has Cure Days days to pay. If Debtor does not pay, Creditor may declare the unpaid balance due at once, and any discount in Section 4 ends, with credit given for all amounts paid. Creditor will collect only through lawful means. Late fees, if any, are $Late Fee or None.

6. No Further Action

While Debtor is complying with this plan, Creditor will not sue on the Debt or refer it to collection, and will pause any collection already under way. Any third-party debt collector must also comply with the Fair Debt Collection Practices Act.

7. Authority and Other Terms

This Agreement is not a release of any other debt. It is governed by the laws of the State of Governing State. It is the parties' complete agreement on this plan and may be changed only in a writing signed by both. If any part is unenforceable, the rest stays in effect. Each party signs voluntarily and may consult a lawyer. If the Debt is secured, or a court judgment exists, those rights continue unless stated here: Security or Judgment Terms or None.

| Creditor | Debtor |

| --- | --- |

| Signature: Creditor Signature | Signature: Debtor Signature |

| Name: Creditor Printed Name | Name: Debtor Printed Name |

| Date: Creditor Signing Date | Date: Debtor Signing Date |