ACKNOWLEDGEMENT OF DEBT
1 Debtor, payment in instalments
Summary This Acknowledgement of Debt may be used where a debt is owed by a single person or legal entity. An Acknowledgement of Debt can be used to acknowledge and confirm that a debt is due, and to specify that the debt is payable in a number of instalments.
Why do I need an Acknowledgement of Debt? If you or your business has debtors that owe money, this Acknowledgement of Debt may be used to specify the amount owed and the agreed payment terms. An Acknowledgement of Debt confirms that a debt is due, and sets out an undertaking by the Debtor to pay the debt in regular instalments at agreed intervals. If the debt is not paid as agreed, the creditor may use the Acknowledgement of Debt to take further action.
What does the Acknowledgement of Debt say? This Debtor’s acknowledgement of indebtedness sets out: The Debtor’s details; The amount of the debt; The repayment details; Default and costs.
What does the template Acknowledgement of Debt look like? The debtor’s payment undertaking can be printed onto three pages.
What do you need to do to use the Acknowledgement of Debt?
- Read the template AOD document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details, and get the Debtor to sign.
View also: AOD, single instalment
If this transaction is subject to the National Credit Act 34 of 2005 then a specialist’s advice should be sought.
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