Agreement To Pay Debt In Installments Template for Germany

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Key Requirements PROMPT example:

Agreement To Pay Debt In Installments

"I need an Agreement to Pay Debt in Installments for a €50,000 business loan to be repaid in monthly installments of €2,500 starting March 2025, with the debt secured against company equipment and including acceleration clauses in case of default."

Document background
The Agreement To Pay Debt In Installments is essential in situations where a debtor needs to restructure their payment obligations under German law. This document is commonly used when full immediate payment of a debt is not feasible, and parties agree to spread the repayment over time. It's applicable in both business-to-business and business-to-consumer contexts, requiring compliance with the German Civil Code (BGB) and, where relevant, consumer protection laws. The agreement includes crucial elements such as debt acknowledgment, payment schedule, default provisions, and may incorporate interest calculations. It serves as a formal record of the new payment arrangement while preserving the creditor's rights and providing the debtor with a manageable repayment structure.
Suggested Sections

1. Parties: Identification of the creditor and debtor with full legal names and addresses

2. Background: Description of the original debt, its origin, and current outstanding amount

3. Definitions: Definition of key terms used in the agreement including 'Due Date', 'Installment Amount', 'Outstanding Balance'

4. Acknowledgment of Debt: Formal acknowledgment of the debt amount and its validity by the debtor

5. Payment Terms: Detailed terms of the installment payments including amount, frequency, and payment method

6. Duration: Total period over which the installments will be paid and the end date of the agreement

7. Default Provisions: Consequences of missing payments and the creditor's rights in case of default

8. Representations and Warranties: Debtor's confirmation of ability to pay and truth of provided information

9. Notices: How and where formal communications between parties should be sent

10. Governing Law: Confirmation that German law governs the agreement

11. Signatures: Execution block for both parties to sign and date the agreement

Optional Sections

1. Interest Rate: Terms of any interest charged on the outstanding balance - used when interest will be applied to the debt

2. Early Repayment: Terms for early repayment of the full amount - included when early repayment is permitted

3. Security: Details of any collateral or security provided - used when the debt is secured

4. Insurance Requirements: Any insurance the debtor must maintain - included for larger debts or when security is provided

5. Assignment: Rights to assign the debt to third parties - included when debt assignment might be contemplated

6. Guarantor Provisions: Terms applying to any guarantor - included when a guarantor is involved

7. Acceleration Clause: Conditions under which full payment becomes immediately due - used for higher-risk situations

Suggested Schedules

1. Payment Schedule: Detailed table showing all installment amounts and due dates

2. Calculation of Total Debt: Breakdown of the original debt, any interest, fees, and total amount payable

3. Payment Methods: Details of accepted payment methods and bank account information

4. Original Debt Documentation: Copies of documents evidencing the original debt

5. Security Documentation: Details of any security or collateral (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Banking & Financial Services

Real Estate

Retail

Manufacturing

Professional Services

Construction

Healthcare

Education

Small Business

Consumer Services

Relevant Teams

Legal

Finance

Credit Control

Accounts Receivable

Collections

Risk Management

Treasury

Compliance

Commercial

Relevant Roles

Credit Manager

Financial Controller

Collections Specialist

Accounts Receivable Manager

Legal Counsel

Debt Recovery Officer

Finance Director

Credit Risk Analyst

Business Owner

Account Manager

Treasury Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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