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This agreement helps you prevent losing your money by setting out details such as the settlement amount, date for payment and terms to avoid any future disputes.
You need this in case you have given out money to someone and you want to settle the debt. Now, in case the debtor is unable to pay back the full amount,
instead of wasting furthermore time, you can reach an agreement as to how much the debtor can pay you.
This agreement can be legally enforced by printing it on a non judicial stamp paper, affixing the stamp duty as per the state laws, with the signatures of both the parties agreeing to it.
You may use it if you are a creditor or a debtor who has agreed to settle a debt and need to write down the terms of that settlement.
Users who create Debt Settlement Agreement often require the following list of additional agreements.