“Don’t worry, I’ll pay you back next week!”
Tired of hearing that over and over again? Us too!
An Acknowledgement of Debt is a legal document used when someone owes you or your company money and hasn’t paid you back. You can use this document as a formal agreement and acknowledgement that the debtor is indebted to you (or your company) and will pay you back.
The Acknowledgement of Debt can reflect any payment terms, due dates and consequences for the debtor of failure to fulfil their payment obligations. Lastly, the Acknowledgement of Debt contains a consent to judgment which, if signed by the Debtor, allows you to take immediate action if the debtor misses a payment date and shortens the process of taking the Debtor to court considerably.
It’s crucial to get an Acknowledgement of Debt signed if you’re owed money.
We will provide you with the following:
- A telephone or personal meeting where we run you through a discussion on your Acknowledgement of Debt to work out the terms of the arrangement.
- We draft the Acknowledgement of Debt, tailored to suit your needs.
- You review the agreement and send your comments back to us for feedback.
- We finalize the draft ready for signature.