Debt Acknowledgment Agreement



This Agreement is made on [Date], [Year]



Parties



Creditor: [Creditor Name], ID/Registration Number [ID Number]

Address: [Creditor Address]

Phone: [Phone Number] Email: [Email Address]

Hereinafter referred to as "Creditor"



Debtor: [Debtor Name], ID/Registration Number [ID Number]

Address: [Debtor Address]

Phone: [Phone Number] Email: [Email Address]

Hereinafter referred to as "Debtor"



WHEREAS, Debtor acknowledges owing a debt to Creditor and wishes to formalize repayment terms, both parties agree to the following:



1. Debt Acknowledgment



1.1 Debtor hereby acknowledges and agrees that they owe Creditor the principal sum of $[Amount] ([Amount in Words]).



1.2 This debt arose from: [☐ Loan / ☐ Goods/Services / ☐ Business Transaction / ☐ Other]

Description: [Detailed Description of Debt Origin]



1.3 Original debt date: [Original Date]



2. Interest and Charges



2.1 Interest rate: [Rate]% per [☐ Month / ☐ Year] [☐ Simple / ☐ Compound] interest.



2.2 Accrued interest as of this agreement date: $[Interest Amount]



2.3 Late payment penalty: [☐ $[Amount] per day / ☐ [%] per month / ☐ No penalty]



2.4 Total amount owed (including interest and charges): $[Total Amount]



3. Repayment Terms



3.1 Payment schedule: [☐ Lump sum / ☐ Installments]



3.2 If lump sum: Full payment due on [Due Date]



3.3 If installments:

• Monthly payment: $[Monthly Amount]

• Payment due date: [Day of Month] of each month

• First payment due: [First Payment Date]

• Final payment due: [Final Payment Date]



3.4 Payment method: [☐ Cash / ☐ Check / ☐ Bank transfer / ☐ Other]

Payment details: [Account Information or Instructions]



4. Early Payment



4.1 Debtor may prepay the debt in full or in part without penalty [☐ Yes / ☐ No]



4.2 Early payment discount: [☐ Available / ☐ Not available] at [Percentage]% if paid by [Date]



5. Security and Guarantees



5.1 Security provided: [☐ None / ☐ Personal guarantee / ☐ Collateral / ☐ Other]



5.2 If collateral: Description of collateral: [Collateral Description]

Estimated value: $[Value]



5.3 If personal guarantee: Guarantor name: [Guarantor Name]

Guarantor signature: _________________________



6. Default and Remedies



6.1 Default occurs if Debtor fails to make payment within [Grace Period] days of the due date.



6.2 Upon default, Creditor may:

• Declare the entire debt immediately due and payable

• Pursue legal action for collection

• Enforce security interests

• Charge additional interest and fees



6.3 Debtor agrees to pay all reasonable collection costs, including attorney fees.



7. General Provisions



7.1 This agreement shall be binding upon heirs, successors, and assigns of both parties.



7.2 Any modifications must be in writing and signed by both parties.



7.3 This agreement shall be governed by the laws of [State/Country].



7.4 Any disputes shall be resolved in the courts of [Jurisdiction].



By signing below, both parties acknowledge they have read, understood, and agree to be bound by this agreement.





CREDITOR:



_________________________ Date: ___________

[Creditor Name]





DEBTOR:



_________________________ Date: ___________

[Debtor Name]





WITNESS:



_________________________ Date: ___________

[Witness Name]