What is a Payment Plan?
While this document is intended to support those who have been unexpectedly laid off or furloughed, you should only enter into this agreement if you believe the other party will make a good faith effort to repay the debt.
When to use a Payment Plan:
- You are a creditor whose debtor can't pay on time.
- You have been asked by your debtor to defer payments.
- You want to set out the terms of the debt repayment.
- You want to offer a discount in exchange for specific services.
This Payment Plan is between (the "Lender"), of , , , and (the "Borrower"), of , , , effective (the "Effective Date").
This Payment Plan is entered, as of the Effective Date, by and between the Lender and Borrower, and is subject to the terms and conditions specified below. This Payment Plan between the Lender and Borrower will cover the Borrower's debt in relation to the following: . All terms used, but not defined, herein shall have the meanings set forth in the original agreement. Except as expressly set forth herein, the original agreement remains unamended and in full force and effect.
The Lender will allow the Borrower to defer payments and re-pay this amount in installments , as set out in this Payment Plan.
This deferral will apply from and will apply for , covering the Borrower's debt in relation to the following:
IN WITNESS WHEREOF, the parties hereto have executed this Payment Plan to be effective as of the day, month and year first written above.