The Payment Agreement records the outstanding debts and sets out a payment plan for the Debtor to make the payments to the Creditor without any interruptions. This template is drafted in favour of the Creditor.
Any partial/late payment by the debtor will be considered as default and the remaining outstanding amount will become payable immediately. The Creditor will also be entitled to recover the debt with accrued interest and attorney fee/collection cost incurred by the Debtor.
The Creditor may also assign the Agreement to a third party.
The Agreement includes:
(a) Acknowledgement of the outstanding debt
(b) Payment Plan i.e. a debt repayment schedule including the method of payment is outlined in Exhibit A to the Agreement
(C) Consequences of default in payment by the Debtor
The Payment Agreement can be used by a Creditor to outline the debt repayment schedule for the Debtor.
The total debt amount, payment method, instalment amount and the due date should be specified in the Agreement.
Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.
This document should be carefully read by the Creditor and the Debtor.
1. Click the “Create Document” button and fill in the details of the parties. You can click the “Fill with Member’s Information” button to complete the party’s information with your personal or business information saved to your account.
2. Please fill in any additional information by following the step-by-step guide on the left-hand side of the preview document and click the “Next” button.
3. When you are done, click the “Get Document” button and you can download the document in Word or PDF format.
4. Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document. Each party should have a copy of the executed document.
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