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 Debtor. For instance, the Creditor grants an additional 30 day period to make payment in case of delay and the Debtor will not be charged any late payment fee. The Agreement will be considered in default only if the payment is unpaid after the additional period granted by the Creditor. In the case of Default, the Creditor can recover only the outstanding debt amount and not accrued interest/attorney fees.
The Agreement includes:
(a) Acknowledgement of the debt
(b) Payment Plan i.e. a debt repayment schedule including the method of payment is outlined in Annexure A to the Agreement
(C) Late Payment
(D) Consequences of default in payment
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.