A Letter Accepting Payment in Instalments is a concise letter accepting debt repayments from your debtor in instalments. It sets out the amount as well as the time in which the debt has to be repaid.
If you have received an offer by a debtor to pay off their debt in regular fixed amounts, you can use the Letter Accepting Payments in Instalments to formalise the agreement for the repayment. It can prevent any potential legal disputes by setting out clear rules for the repayment of the debt.
A Letter Accepting Payments in Instalments reserves your right to take any legal action to recover outstanding debt. If the debtor fails to repay the debt on time, this letter can serve as evidence of your agreement.
When drafting a Letter Accepting Payments in Instalments, it is important to focus on a number of key clauses, in particular: