A debt settlement statement outlines the terms and conditions of a debt settlement agreement. The debtor can create the statement at home and then mail it to the creditor for final approval. If the statement does not reflect the information agreed to by both parties, the lender can request a revision. When writing a debt settlement statement, provide only the facts of the settlement and be very specific.
Instructions
- 1
Identify the bank, collection agency or creditor to which you owe an outstanding debt obligation. Include the business' current mailing address and zip code. Identify yourself as the debtor. Provide your current mailing address and zip code. Date the settlement statement.
2Write out the recitals, which is a section used to offer key background information about the debt. Specify the original debt amount and effective date of the original loan or credit card agreement. Attach a copy with your debt settlement statement.
3Acknowledge your outstanding loan obligation. Write out the dollar amount you, the debtor, still owe the lender.
4Acknowledge the settlement amount. Write out the dollar amount the lender is accepting to settle the debt. Include information about delivery and payment options. For example, agree to pay a lump sum by electronic payment.
5State the conditions of the settlement agreement. For example, require the creditor to report the debt as "paid in full" on your credit reports.
6Include a clause against breaking the settlement agreement. For example, if you fail to pay the settlement amount, state that the lender is entitled to file a petition for repayment in court.
7Request the lender's signature. The lender's signature releases you of the debt once the promised settlement is received. By signing the document, the lender forgoes all rights to seek the original amount of the debt.
8Sign and date the settlement statement acknowledging you comply with the terms of the settlement agreement.
9Retain a copy of the statement for your records.
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