Debt Settlement Agreement

# Debt Settlement Agreement **Date:** ___________ This Debt Settlement Agreement ("Agreement") is entered into by and between: **Creditor:** ___________ ("Creditor") **Debtor:** ___________ ("Debtor") ## 1. Background Debtor owes Creditor the total amount of $___________ (the "Original Debt") arising from: **Account/Reference Number:** ___________ **Description:** ___________ ## 2. Settlement Terms The parties agree to settle the Original Debt in full for the reduced amount of $___________ (the "Settlement Amount"), representing a savings of the difference between the Original Debt and the Settlement Amount. ## 3. Payment Terms Debtor shall pay the Settlement Amount as follows: ___________ ___________ Payment shall be made by ___________. ## 4. Release and Discharge Upon receipt of the full Settlement Amount, Creditor agrees to: (a) Consider the Original Debt fully satisfied and discharged; (b) Cease all collection efforts related to this debt;