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Enter the full legal name of this party exactly as it appears on their ID or business registration.
Enter the full legal name of this party exactly as it appears on their ID or business registration.
A Debt Settlement Agreement documents the legally binding resolution to discharge an outstanding debt for less than the full amount owed, in exchange for a lump-sum or structured payment. Upon timely performance, the creditor must mark the account satisfied and cease collection activity. Forgiven amounts over $600 may constitute taxable income — the creditor is required to issue a 1099-C. Fill out this free debt settlement agreement template online, e-sign it digitally, and download a legally valid PDF. no account or lawyer needed. Sections: Parties, Terms.
This Debt Settlement Agreement is made between ______________ ("Creditor") and ______________ ("Debtor") to resolve an outstanding debt.
Debtor currently owes Creditor $0.00 (the "Debt").
In full and final settlement of the Debt, Debtor shall pay Creditor $0.00 on or before ______________.
Upon receipt of the settlement payment, Creditor releases and forever discharges Debtor from any and all claims arising out of or relating to the Debt.
This Agreement is a compromise of disputed claims and shall not be construed as an admission of liability by either party.
Creditor shall report the Debt as "settled in full" to any applicable credit reporting agencies within thirty (30) days of receipt of payment.
This Agreement shall be governed by and construed in accordance with the laws of the State of ______________, without regard to its conflict-of-laws principles.