Debt Settlement Agreement Template

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DEBT SETTLEMENT AGREEMENT

BETWEEN
Harris and Sons Lending Corp.
AND
Sarah R. Griffin

Parties

This DEBT SETTLEMENT AGREEMENT (“Agreement”), is made and entered into on [January 18, 2021], by and between [Deborah A. Harris] of [Harris and Sons Lending Corp.] at [4833 Lincoln Drive, Montgomery Creek, California 96065] (“Lender”) and [Sarah R. Griffin] at [2216 Riverwood Drive, Montgomery Creek, California 96065] (“Borrower”). Individually, each shall be referred to as the “Party” and collectively as the “Parties.”

WHEREAS the Borrower, who has an outstanding debt to the Lender, intends to settle such debt in full payment to the Lender who was negotiated by the former party on such debt settlement.

NOW, THEREFORE, in light of all the premises, acknowledgments, and mutual promises set forth, and for all other good and valuable consideration, the Lender and the Borrower hereby agree as follows:

Terms and Conditions

DEBT ACKNOWLEDGEMENT. 

The Borrower acknowledges that it has a current outstanding debt to the Lender of ten thousand dollars ($10,000.00) ("Debt"). The Borrower further agrees that it is indebted to the Lender in the full amount of such Debt.

DEBT SETTLEMENT AMOUNT. 

Both Parties agree that the Lender shall accept a [twenty-five percent (25%)] payment of the Debt in the amount of [two thousand and five hundred dollars ($2,500.00)] ("Settlement Amount") toward the settlement of such Debt in full.

MUTUAL RELEASE. 

Once the Lender receives and the Borrower gains subsequent clearance on the agreed payment for the Settlement Amount and Debt, all the Parties shall release each other from any further claim or liability.

ESSENCE OF TIME. 

Both Parties admit that with respect to the execution of the terms and conditions of this Agreement, time is of the essence in the payment of the Settlement Amount.

CONFIDENTIALITY. 

Any and all information or materials arising from the execution of the terms and conditions of this Agreement shall be strictly kept confidential by both Parties.

SEVERABILITY.

If any term or condition is found invalid or unenforceable for any specific reason or by a court of competent jurisdiction, all remaining terms and conditions will remain valid and binding between both Parties.

GOVERNING LAWS. 

This Agreement shall be interpreted and governed by and in accordance with the laws of the state of California.

ENTIRE AGREEMENT. 

This Agreement constitutes the entire property settlement agreement by and between the Lender and the Borrower and supersedes all prior agreements, either written or verbal, with respect to all matters covered in the Agreement.

Signature

Signature *

Name *

Signature *

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