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Debt settlement agreement

Settling a debt for less than the full amount, in writing.

Use this templateOpens in Sealquill with the signature lines placed. Free plan, no card.

What you fill in

Creditor name
Debtor name
Amount
Describe
Settlement amount
Date

Blanks are shown in [square brackets]. Edit the text in Sealquill before you send it; the PDF editor changes the real words.

Debt Settlement Agreement

This Debt Settlement Agreement is made between [Creditor name] (the "Creditor") and [Debtor name] (the "Debtor") as of the date of the last signature below.

1. The debt

The Debtor owes the Creditor [amount] for [describe]. The parties agree to settle it on the terms below.

2. Settlement

The Debtor will pay [settlement amount] by [date]. When that payment clears, the Creditor accepts it in full satisfaction of the debt and releases the Debtor from the rest.

3. If not paid

If the settlement amount is not paid on time, this agreement ends and the full debt, less anything paid, remains owing.

4. General

This agreement is governed by the laws of [state]. It is the entire agreement between the parties on its subject and may be changed only in writing signed by both. It may be signed electronically and in counterparts.

Creditor

Signature, name and date

Debtor

Signature, name and date

More finance and lending templates

This template is a general starting point and is not legal advice. Laws differ from place to place and every situation is different: have a lawyer review anything important before you rely on it.

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Use this templateSigners need no account and can sign on a phone.