A debt settlement contract is used when a debtor is unable to repay all the borrowed funds. Instead of wasting time and money to drive out a debtor, you can agree on how much a debtor can pay you. This sample of compensatory securities defines the amount originally due and the amount of the new compensation to be paid. Other conditions include when the payment is made and how the debtor will make the payment. If the debtor is unable to pay in a timely manner, the total amount of the debt is owed. The optional sections of this debt settlement agreement contain confidentiality and liability clauses. Other names for this document: debt settlement agreement form, debt settlement, credit compensation 21. Also on the relevance of the agreement and whether executed under duress, the applicant emphasized that the burden of proof on the person who was alleged and that both in the testimony and the documents that were invoked the only evidence was invoked no allegation or evidence of coercion. The decisions of S.M. MACHARIA -VS-KCB HCCA 12 (b) OF1992 and STANLEY KARIUKI NJUGUNA -VS- DANIEL MUSYOKI SYAND HCCA NO. 19 OF 2016 were used for the thesis that the main characteristic of the compulsive threat imposes an advantage over the other. Several pieces of information will be needed to balance the text of this agreement. In the beginning, we will consolidate the parties who intend to enter into this contract.
First, we will identify the creditor. That is, the party that holds the debt. Write down the creditor`s legal name on the first space of the first paragraph. Then, with the second empty line, document the address of the creditor`s street. Finally, the third and fourth empty posts will need the city and the state linked to the creditor`s designated road address. Then we will identify the debtor. This is the party that is required to repay the debts outstanding to the creditor. We must document the same information about the creditor in the rest of this paragraph. Then, if you are looking for the fifth empty space in this paragraph, document the debtor`s full name.
Continue the debtor`s report with his address, city and state of residence on the sixth, seventh and eight empty spaces. In other areas, information is also needed, starting with the date of “I. Validity Date.” This is the date on which the terms of this agreement act or take effect. Save the name of the month, the double-digit day and the double-digit year on the first calendar day during which the agreement becomes active. Then, in “II. Current debt” we will have to document the full current debt that the debtor is obliged to pay the creditor. Use the empty line placed in this statement after the dollar symbol to save this amount of money. The third point, “III settlement Debt,” asks for the adjusted amount of debt that has been set for the purposes of this document, which is made available to the empty line.