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Debt Settlement Agreement Template

debt settlement agreement is a contract formed between a debtor (a person that owes money) and a creditor (the holder of the debt) to restructure the terms of owed money. The process starts with a debtor writing a debt settlement offer to their creditor, proposing the creditor with a lump-sum payment (that is equal to or less than the amount owed) in exchange for having the debt absolved. If the creditor agrees to the offer, they will complete the debt settlement agreement offered here. The terms of the agreement require the creditor to stop reporting the debtor’s information to the major credit bureaus once the settlement has been paid.