You should use this letter if your business is owed a debt by another business, that business has proposed a way to settle the debt and you intend to accept the proposed arrangement. This letter is not a legally binding agreement on you. This is because an agreement to accept a proposal to pay a debt that is already due is not legally binding unless it is supported some other new terms. To make it legally binding, you would need to either accept some form of incentive e. If you both agree to these alternative payment terms, our experts recommend that you put in place that deed of variation of payment terms or even our agreement in full settlement of disputed debt as soon as possible. To discover more about managing debt within your small business, take a look at our guide to handling late-payers and bad payers and our guide to debt collection for small businesses.
Resignation Acceptance Letter, format Sample letter for accepting
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Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower negotiated amount is agreed to by the creditor or collection agency and must be fully documented in writing. The settlement is often paid off in one lump sum, although it can also be paid off over time. Although creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than many people realize. For those individuals who wish to pursue debt settlement on their own, without the aid of an experienced debt settlement company , contacting creditors with a carefully crafted debt settlement proposal letter is an absolute must.
Secured with SHA Encryption. Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B. Her current work revolves around insurance guides and informational articles.