[Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Recipient's Name] [Recipient's Address] [City, State, ZIP] Subject: Agreement to Compromise Debt — [Account/Loan Number] Dear [Recipient's Name], I hope this letter finds you well. I am writing to propose a compromise of the outstanding debt owed by me to [Creditor's Name]. I am a resident of Rhode Island, and I am seeking your cooperation in resolving this matter amicably. First and foremost, I would like to express my willingness to settle the debt in the most mutually beneficial way possible. Based on my current financial situation, I regretfully acknowledge that I am unable to fulfill the original repayment terms outlined in the loan agreement. I would like to propose that we enter into an Agreement to Compromise Debt, whereby we can find a reasonable and fair settlement that allows me to make a lump-sum payment or arrange a payment plan that is suitable for both parties. By reaching such an agreement, it will help alleviate the financial burden I am facing and allow me to work towards resolving my debts responsibly. As a means of providing transparent and open communication, I am attaching relevant financial documentation, including my current income statements, bank statements, and any other supporting documents that may further substantiate my financial situation. I believe this information will assist you in evaluating my ability to fulfill the terms of the proposed agreement. I propose a compromise amount of [Proposed Settlement Amount], which is a substantial reduction from the total outstanding debt. Furthermore, I kindly request your thoughtful consideration of this offer, taking into account the financial hardships I am currently facing. In the spirit of fostering trust and good faith, I propose the following terms for the Agreement to Compromise Debt: 1. Proposed Settlement Amount: [Proposed Settlement Amount] 2. Payment Method: [Specify if lump-sum payment or monthly installments] 3. Payment Schedule: [Specify the proposed dates and amounts, if applicable] 4. Release of Liability: Upon receipt of the settlement amount, all parties involved will be released from any further obligations, claims, or liability regarding the outstanding debt. 5. Confidentiality: Both parties agree to maintain the confidentiality of this settlement agreement and avoid disclosing any information relating to it, except as required by law. Please review this proposal and notify me within [set a specific time period, e.g., 14 days] of your decision and any counteroffer you may wish to propose. I firmly believe that accepting this compromise will be beneficial to both parties involved and will help avoid further legal complications, expenses, and delays. I appreciate your understanding and cooperation in working towards a mutually agreeable resolution. Should you have any questions or require further information, please do not hesitate to contact me at your earliest convenience. Thank you for your time and consideration. I look forward to your response. Sincerely, [Your Name]
Rhode Island Sample Letter for Agreement to Compromise Debt
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How to fill out Rhode Island Sample Letter For Agreement To Compromise Debt?
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Your debt settlement proposal letter should contain the following:Your current financial situation.Debt settlement offer.Personal information.What you expect in return.Acceptance of the proposal.Acceptance of the proposal upon adjusting (negotiating) the amount to be paid.Rejection of the proposal.
A debt settlement agreement is a contract signed between a creditor and debtor to re-negotiate or compromise on a debt. This is usually in the case when an individual wants to make a final payment for a debt that is owed.
The language can be as simple as: In order to settle this matter amicably, I offer you the sum of amount (inclusive of interests and costs) as the full and final settlement of the above claim/debt.
Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.
The percentage of a debt typically accepted in a settlement is 30% to 80%. This percentage fluctuates due to several factors, including the debt holder's financial situation and cash on hand, the age of the debt, and the creditor in question.
Write a debt settlement letter to your creditor. Explain your current situation and how much you can pay. Also, provide them with a clear description of what you expect in return, such as removal of missed payments or the account shown as paid in full on your report.
Contents of a Debt Settlement AgreementDate of the agreement.Name and address of the creditor.Name and address of the debtor.Original loan amount and its date.Rate of interest.Due date of the loan.Final settlement amount.Signatures of both parties.More items...?
Your debt settlement proposal letter must be formal and clearly state your intentions, also as what you expect from your creditors. you ought to also include all the key information your creditor will got to locate your account on their system, which includes: Your full name used on the account. Your full address.
Writing the Settlement Offer LetterInclude your personal contact information, full name, mailing address, and account number. Specify the amount that you can pay, as well as what you expect from the creditor in return. A good starting point for negotiation could be offering around 30% of the amount that you owe.
What percentage should I offer a full and final settlement? It depends on what you can afford, but you should offer equal amounts to each creditor as a full and final settlement. For example, if the lump sum you have is 75% of your total debt, you should offer each creditor 75% of the amount you owe them.
