As a general rule, a creditor should be subject to an offer of between 30% of the balance of the outstanding debt, so that he can consider it. The cre4ditor normally returns with a counter-offer of 50%. The letter should contain facts and not be a place where the debtor complains about his needs and keeps talking about his problems. When it comes to money and payments, a payment contract is usually drawn up. It is a formal written document between two parties, usually called lenders and borrowers. The agreement follows a particular process for it to work effectively. Here are the steps in the agreement process: This debt settlement agreement (the « Agreement ») sets out the terms that govern the contractual agreement between [the company] having its registered office at [ADDRESS] (the debtor) and [company] having its registered office at [ADDRESS] (the address of the « creditors ») that agree to be bound by this agreement. The best way to reduce the amount they have to pay is to send a debt settlement contract to their creditors. The letter must clearly state the difficulties that led the debtor to be unable to repay his debts. The person will not be able to reduce his debt by saying that he made too many purchases, and now he cannot pay for it. These agreements are common between companies that agree to exchange money for goods or services.
These documents can also be used by insurance companies that ask customers to accept certain payment terms. After successfully paying the compromised amount (name of creditor/collection office), he agrees to delete any negative information he may have placed in the debtor`s credit information. In addition, (creditor name/collection office) undertakes never to place such information in the debtor`s credit information in the future. Both parties would have already agreed to the payment terms, so write them all down in the document. This is important so that if one of the parties does not follow what has been written, you have documented evidence. Payment terms are important so that borrowers and lenders know what to expect.. . .