Payment Plan Agreement Template

This payment plan agreement is made by and between

​[Debtor.FirstName][Debtor.LastName], with an address at [Debtor.StreetAddress], [Debtor.City], [Debtor.State][Debtor.PostalCode] referred to as the “Debtor,”

and

[Creditor.FirstName][Creditor.LastName] with an address at [Creditor.StreetAddress], [Creditor.City], [Creditor.State][Creditor.PostalCode] referred to as the Creditor, collectively referred to as “Parties,” and is made effective on the (date).

AGREEMENT

The Debtor agrees to pay the Creditor an amount of $(insert amount) in a structured payment plan according to the terms and conditions provided below. This sum responds to (add services or goods if applicable, e.g., a car), and at the time of the agreement, the Debtor owes $(insert amount) to the Creditor.

PAYMENT PLAN

Both parties agree to the following payment plan until the debt is completely paid off: (Describe the payment plan)

The total amount of $(insert amount) will be paid with installments of $(insert amount) to be paid on (insert the day, e.g., the first of each month, bi-weekly), and with an interest rate of (insert number)% compounded annually. The payment method will be (add method).

REPAYMENT PERIOD

The Debtor agrees to pay off the debt according to the established period in this agreement from the moment it is made effective until (date). Any delays or breaches of the established terms will result in a %(insert number)fee added to the owed sum every (insert number and period, e.g., 5 days, 2 weeks, 1 month, etc.)

GUARANTOR

The Creditor requires the Debtor to have at least one guarantor who hereby agrees to assume all the Debtor’s responsibilities in case of a contract breach. Hereby, the guarantor guarantees the prompt fulfillment of all existing duties and obligations of the Debtor, and the repayment of $(insert amount), under the terms of this agreement and up to a limit of $(insert amount). If the Debtor fails to repay the loan, the guarantor is financially responsible for repaying all remaining debt plus interests by the limit established hereby.

DEFAULT

If the Debtor fails to provide the payments and fulfill the payment plan within the time frame established in this contract, the Creditor has the right to declare the remaining amount and applicable interests, if any, immediately due and payable. The Debtor will be considered in default after (insert number, e.g., three) failed payments. In that situation, the Creditor also has the right to pursue further legal action based on the terms and conditions of this agreement.

GOVERNING LAW

This agreement is made under the frameworks and follows the laws of (insert jurisdiction, e.g., city, state).

DISPUTE RESOLUTION

To maintain the integrity between both parties, if any dispute arises as a result of this agreement, it should be submitted to (add the name of the arbitrary or mediator) by all local, state, and federal laws.

ENTIRE AGREEMENT

This agreement contains the whole agreement and understanding among the parties. It supersedes all prior agreements, deals, or conditions expressed or implied by any of the parties before, either written or verbally. Anything said outside the contract, before or after it is consumed, will not be valid.

AMENDMENTS

Both parties agree to communicate any modifications, changes, or updates to this agreement in writing and with the signatures of everyone involved. If any amendments are made, they will be applied to this agreement. As a result, the parties agree to all the terms and conditions set in this contract, which are validated with their signatures below.