How To Use
This is the Agreement you must receive, signed by the Creditor in question and witnessed thereto, before tendering final payment to them.
When requesting a settlement, include this form as a proactive step. Note that you do not need to sign the Agreement nor should unless requested by them for you to make a countersignature. Only sign this after they have done so or at the same time of a meeting.
This review list is provided to inform you about this document in question and assist you in its preparation.
- Make multiple copies for the parties. Keep an original in your home safe (if you haven’t gotten one yet, consider this another prompting to do so) and copies in your financial files.
- Use a copy of this agreement with future creditors to show that settlements can work and be implemented effectively. This puts them on notice as to your expertise and experience in the matter, as well as outlining an approach to resolution successfully accomplished in the past.
- Use this form whenever compromising a claim with a creditor. It stands up well over time and prevents the possibility of any future dispute, especially if the creditor is sold, merged, or otherwise reorganized.
Release by Creditor
Being Released from Obligation (the “Releasee”) Settlement Amount $_________ Amount of Payment to Creditor (“Settlement Amount”)
From: ___________________ (“Releasor”)