Payment Plan Agreement by EasyLegalDocs
This document outlines a formal agreement between a Debtor and a Creditor for the repayment of an outstanding debt. It details the initial payment, subsequent installment amounts, payment schedule, and acceptable payment methods. The agreement also specifies the consequences of a breach, such as acceleration of the entire debt.
PAYMENT PLAN AGREEMENT
This Payment Plan Agreement (hereinafter referred to as the "Agreement") is made and effective as of [effective date] (the “Effective Date”),
BY AND BETWEEN: | [debtor name], with an address of [debtor address], hereinafter referred to as the “Debtor”. |
AND: | [creditor name], with an address of [creditor address], hereinafter referred to as the “Creditor”, collectively referred to as the “Parties”, both of whom agree to be bound by this agreement.. |
Representation and Warranty
The Debtor represents and warrants that they have created this Agreement, including the repayment schedule, believing they can satisfy the Creditor's demands without interruption, barring unforeseen changes in circumstances.
Debt
The Debtor agrees to settle the owed amount of [debt amount owned] (the "Deficiency") and wishes to make payment. This Agreement does not relinquish any unpaid amounts and should there be a violation of this Agreement by the Debtor, the Creditor's rights to the Deficiency will remain in effect.
Settlement
The Debtor shall pay the full amount of [first payment amount] at the time of signing this Agreement. The remaining balance shall be paid in installments of [monthly installment amount] on the 1st of each month, until payment is made in full, without any extra charges or interest.
Payment Method
The Debtor shall make the payment to the Creditor with the address set forth above through either cash, check, or bank transfer.
Warranties
The Parties agree to release each other from responsibility for the existing debt, except for issues pertaining to this Agreement's conditions. Additionally, the Creditor will remove any credit record of the Debtor upon the Agreement's completion.
Acceleration upon Breach
If the Debtor fails to meet the payment schedule outlined in this Agreement, including but not limited to:
Missing a monthly installment payment on the due date.
Failing to make the initial payment at the time of signing this Agreement.
Making payments that are less than the agreed-upon monthly installment amount.
Using a payment method that is not in accordance with the Payment Method section of this Agreement.
Then, after ten calendar days of such a breach, the entire amount of the Deficiency will be immediately due, and the Creditor shall have the right to pursue any legal remedies available to collect the outstanding debt.
Modification
No modification or amendment to this Agreement shall be valid unless in writing and signed by the Parties.
Successors and Assigns
This Agreement will be applicable to and beneficial to both parties involved as well as their successors and assigns.
Applicable Law
This Agreement and its provisions are to be determined in accordance with California law without regard to its conflicts of laws principles.
Acceptance
The Debtor hereby accepts and agrees to the terms of this Agreement.
Signature
IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the day and year set forth below.
[debtor name]
Signed:
______________________________
Address:
______________________________
Date:
_________________
[creditor name]
Signed:
______________________________
Address:
______________________________
Date:
_________________
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California note
This version is drafted for California. US contract and employment rules vary by state, so it will not transfer cleanly elsewhere. Tell GitLaw where the parties are and it adjusts the draft.
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