Debt Settlement Agreement Resolves debt-related disputes, specifying terms of debt repayment, settlement amounts, payment schedules, and debt release conditions.
1.1. The Debtor has an outstanding and unpaid debt in the amount of [Debt Amount] due to the Creditor (the "Debt") resulting from [Background and Nature of Debt].
1.2. The Creditor and Debtor desire to settle, satisfy, and resolve any and all disputed claims, demands, and causes of action related to the Debt and provide for full release of each party from any further obligation as provided in this Agreement.
2.1. The Debtor agrees to pay, and the Creditor agrees to accept, the sum of [Settlement Amount] (the "Settlement Amount") in full satisfaction and final settlement of the Debt, on the terms and conditions set forth herein.
2.2. The Debtor shall pay the Settlement Amount to the Creditor according to the following payment schedule: [specify payment schedule, such as dates, amounts, and manner of payment].
2.3. In the event the Debtor fails to make any payment as provided in this Section 2, the Creditor may, at its option, declare the entire unpaid Settlement Amount immediately due and payable.
3.1. Upon receipt of the full Settlement Amount, the Creditor shall release and fully discharge the Debtor from any and all liability and obligation to pay the Debt, and the Debt shall be deemed satisfied in full.
3.2. The Creditor shall provide the Debtor with a written acknowledgment of full satisfaction of the Debt within [Number of Days] days after receipt of the final payment of the Settlement Amount.
3.3. The parties agree that this Agreement constitutes the entire understanding and agreement between them with respect to the Debt and supersedes any prior agreements, understandings, or representations, whether written or oral, relating to the Debt.
4.1. Each party represents and warrants to the other that: (a) it has the full right, power, and authority to enter into and perform its obligations under this Agreement; (b) the execution, delivery, and performance of this Agreement have been duly authorized; and (c) this Agreement constitutes a legal, valid, and binding obligation, enforceable against it in accordance with its terms.
4.2. The Debtor represents and warrants that it has not assigned, transferred, or otherwise disposed of any interest in the Debt and has not filed or had filed against it a petition for bankruptcy relief under any federal or state bankruptcy or insolvency law.
5.1. This Agreement shall be governed by and construed in accordance with the laws of the United States and the laws of the State of [State], without regard to its conflicts of laws principles.
5.2. Any dispute arising out of or relating to this Agreement, or the breach thereof, shall be finally settled by arbitration in accordance with the commercial arbitration rules of the American Arbitration Association then in effect, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
6.1. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
6.2. If any provision of this Agreement is held invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect.
6.3. Any amendment or modification to this Agreement must be in writing and signed by both parties.
6.4. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver.
6.5. This Agreement and any rights or obligations hereunder may not be assigned by either party without the prior written consent of the other party.
6.6. All notices, requests, and other communications under this Agreement must be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, or by email (if receipt is confirmed) to the respective addresses or email addresses of the parties as set forth in the preamble of this Agreement or to such other address or email address as either party may designate by notice to the other party.
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In this Debt Settlement Agreement, you will see the following sections:
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