What is an Acknowledgement of Debt & Payment Schedule Agreement?
An Acknowledgement of Debt & Payment Schedule is a secondary agreement where a Debtor agrees to enter into a payment plan with you, to ultimately satisfy an outstanding debt. In exchange for entering the Acknowledgement, you agree to postpone any legal proceedings against the Debtor for recovery of the monies owed.
How can a Debt & Payment Schedule Agreement assist your company?
Where a Debtor lacks the capacity to immediately pay the entire outstanding balance, this document provides an installment repayment facility. In turn this usually alleviates the need to commence legal proceedings, and ultimately ensures repayment of the entire debt plus interest.
How do you use a Debt & Payment Schedule Agreement?
Your company details have been inserted onto the document for your convenience. You should ascertain a repayment schedule, and insert appropriate dates in the document, as well as details of the Debtor.
The Customer should read the document carefully, sign where indicated, and ensure their signature is witnessed.
You must then also sign the document in the presence of a witness. We then suggest you retain the document in a safe place, in the event Legal Proceedings are commenced and same is relied upon as evidence.