DEBT SETTLEMENT AGREEMENT

DEBT SETTLEMENT AGREEMENT

This Debt Settlement Agreement (the “Agreement”) states the terms and conditions that govern
the contractual agreement between__________ (the Debtor) of (Address) and
(the Creditor) of (Address) who agrees to be bound by this agreement.
WHEREAS, the Debtor is indebted to the Creditor in the amount of
WHEREAS, the Debtor wishes to settle the Debt in full according to the terms of this Debt
Settlement Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the
parties hereto, the Debtor and the Creditor (individually, each a “party” and collectively, the
“Parties”) covenant and agree as follows:

  1. ACKNOWLEDGEMENT OF DEBT
    The Debtor agrees and acknowledges that it is indebted to the Creditor in the full amount of the
    Debt.
  2. SETTLEMENT
    The Debtor promises to pay, The Principal amount of_________________ with interest at the
    annual rate of________ percent on any unpaid balance.
    Payment of this amount is due and payable to the Creditor in full on or before______________
    This amount may be prepaid in whole or in part at any time without penalty. If the Debtor is in
    default more than ________days with any payment, this amount is payable upon demand of the
    Creditor. The Creditor waives demand, presentment of payment, protest and notice.
  3. CONSEQUENCES OF NON-PAYMENT
    In the event of default or non- payment of debt, the Creditor will do the following:
    I. Take legal action against the debtors
    II. Liaise with the motor vehicles department to have either the registration or the driver’s
    license of the motor vehicle revoked
    III. The Creditor has mechanical lien against the Debtor’s vehicle in case of failure to pay the
    debt.
  4. TIME
    The parties agree and acknowledge that time is of essence with regard to Debt Settlement
    Payments.
  5. ENTIRETY

This Debt Settlement Agreement supersedes any prior agreements, understandings or
negotiations whether written or oral.

  1. NO MODIFICATION UNLESS IN WRITING
    No modification of this Agreement shall be valid unless in writing and agreed upon by both
    parties.
  2. JURISDICTION
    This contract shall be governed, interpreted and construed in accordance with the laws of
    (STATE, PROVINCE OR TERRIROTY)
    IN WITNESS WHEREOF, each of the Parties has executed this Debt Settlement Agreement,
    both Parties by its duly authorized officer, as of the day of , (month), 20_

(creditor name) (Signature)

(Debtor name) (Signature)

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