Installment Payment Arrangement Letter Template

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{company_phone}}

Email: {{company_email}}

Website: {{company_website}}

Date

{{date}}

Debtor Information

{{debtor_name}}

{{debtor_address}}

Phone: {{debtor_phone}}

Email: {{debtor_email}}

Subject: Installment Payment Arrangement for Outstanding Debt

Dear {{debtor_name}},

Acknowledgement of Debt

This letter serves to confirm and formalize an agreement regarding your outstanding debt of {{currency}} {{original_debt_amount}} ({{original_debt_amount_words}}) owed to {{company_name}} dating from {{original_debt_date}} for {{reason_for_debt}}.

Installment Payment Plan

We understand your current financial situation and are pleased to offer an installment payment arrangement to facilitate the repayment of the outstanding balance. The agreed-upon terms are as follows:

1. Total Outstanding Debt: {{currency}} {{outstanding_debt_amount}}

2. Number of Installments: {{number_of_installments}}

3. Installment Amount: {{currency}} {{installment_amount}} per installment

4. Payment Frequency: {{payment_frequency}} (e.g., weekly, bi-weekly, monthly)

5. Due Date of Each Installment: The {{day_of_month}} of each {{month_of_period}} (e.g., month/week)

6. First Payment Due Date: {{first_payment_date}}

7. Final Payment Due Date: {{final_payment_date}}

8. Method of Payment: {{payment_method}} (e.g., bank transfer, direct deposit, stop order)

Terms and Conditions

1. All payments must be made on or before the due date. Failure to do so may result in the re-evaluation of this payment arrangement.

2. This agreement does not waive any rights {{company_name}} may have to pursue the full outstanding balance should the terms of this agreement not be met.

3. Any late payments may incur a penalty fee of {{currency}} {{late_payment_penalty}} or {{late_payment_penalty_percentage}}% of the overdue amount.

4. Should you foresee any difficulty in making a scheduled payment, you must notify {{company_name}} immediately to discuss possible adjustments.

5. This agreement is made without prejudice to our rights under the original agreement and will only take effect once signed by both parties.

Acceptance of Terms

Please signify your acceptance of these terms and conditions by signing and dating this letter in the space provided below. A copy of this agreement will be returned to you for your records.

Contact Information

Should you have any questions or require further clarification, please do not hesitate to contact us at {{company_phone}} or {{company_email}}.

Sincerely,

Signature Block - Creditor

_________________________

{{creditor_name}}

{{creditor_title}}

{{company_name}}

Date: ____________________

Signature Block - Debtor

I, {{debtor_name}}, acknowledge and agree to the installment payment arrangement as outlined above.

_________________________

{{debtor_name}}

Date: ____________________