DEBT SETTLEMENT AGREEMENT
DEBT SETTLEMENT AGREEMENT
Contract Date: [Day/Month/Year]
Contract No: [Number, if any]
This Debt Settlement Agreementbetween the parties whose details are provided below, the Turkish Code of Obligations No. 6098, the Banking Law No. 5411 and related legislation , to regulate the settlement of the parties' existing debt relationship under the specified conditions.
1. PARTIES
Debtor (Party Responsible for Paying the Debt):
- Name/Title: [Debtor's Name or Company Name]
- TR Identity Number / Tax Number: [XXXXXXXXXX]
- Address: [Debtor's Address]
- Phone: [XXXXXXXXX]
- Email: [XXXXXXXXX]
Creditor (Debt Creditor):
- Name/Title: [Creditor's Name or Company Name]
- TR Identity Number / Tax Number: [XXXXXXXXXX]
- Address: [Creditor's Address]
- Phone: [XXXXXXXXX]
- Email: [XXXXXXXXX]
The parties will be referred to as "Debtor" and "Creditor" in this agreement .
2. SUBJECT OF THE AGREEMENT
The subject of this agreement is the termination of the debt relationship between the Debtor and the Creditor by settling the Debtor's existing debt through a specific payment plan or at a reduced rate.
- Type of Debt: [Business debt, loan debt, rent debt, etc.]
- Loan Amount (Principal): [X TL / USD / EUR]
- Debt Date: [Day/Month/Year]
- Source of Debt: [Contract No., Invoice, Promissory Note, etc.]
- Late Payment Interest and Other Charges: [If any, should be specified]
- Total Amount to be Paid: [X TL]
- Payment Method: [Cash payment, installment payment, etc.]
- Debt Settlement Period: [Days/Months/Years]
The debtor agrees to pay the debt according to the payment schedule specified in this agreement, and that if the debt is paid in full, the creditor will have no further claims or demands.
3. PAYMENT PLAN AND TERMS
- Advance Payment Status:
- The debtor agrees to pay the debt in cash as [X TL] and the payment will be made on [Day/Month/Year]
- Installment Payment Status:
- First Installment: [X TL], Payment Date [Day/Month/Year]
- Installment Payments: [X TL], Payment Dates [Day/Month/Year]
- Final Installment: [X TL], Payment Date [Day/Month/Year]
- Payments via bank transfer / EFT / cash / check .
- the debtor fails to pay any of the installments within [X] days, the contract may be terminated and the entire debt will become due and payable.
4. DEBT SETTLEMENT AND LEGAL CONSEQUENCES
- The debtor acknowledges that the debt is fully settled upon completion of payments under this agreement .
- The creditor is obligated to issue a written document (release) certifying that the debtor is released from debt.
- The parties agree that after the settlement of the debt, they will not be able to make any claims against each other.
5. EARLY DEBT REPAYMENT AND DISCOUNT CONDITIONS
- If the debtor wishes to repay the debt early, they may benefit from an early repayment discount determined by the creditor.
- If the loan is repaid early, all interest and additional charges will be recalculated, and payment will be made according to a new payment schedule.
6. PENALTY CLAUSE AND TERMINATION PROVISIONS
- Payment Delay:
- If the debtor fails to meet the specified payment dates, a daily late payment interest of X% will be applied.
- If the debtor fails to pay [X] installments consecutively, the entire debt becomes due and payable, and the Creditor may initiate legal proceedings.
- Termination of the Contract:
- Either the debtor or the creditor may terminate the contract with written notice if the other party fails to fulfill its obligations .
- In the event of termination, the parties may claim damages for the losses they incurred as a result of the termination of the contract.
7. FORCE MAJEURE
- one of the parties documents that it is unable to fulfill its obligation due to force majeure events such as earthquakes, fires, epidemics, or war, debt payments may be postponed.
- Once the force majeure event ends, the parties may agree on a new payment schedule.
8. PRIVACY AND DATA PROTECTION
- The parties may not share the information contained in this agreement with third parties.
- The creditor will use the debtor's payment information only in accordance with legal authorities and the regulations of the Banking Regulation and Supervision Agency (BDDK).
9. RESOLUTION OF DISPUTES
- The parties shall endeavor to resolve any disputes arising from this agreement primarily through negotiation .
- In disputes that cannot be resolved between the parties, the [City] Courts and Enforcement Offices have jurisdiction.
10. FINAL PROVISIONS
- This agreement [X] copies and has been read and signed by the parties.
- Neither party may make changes to the terms of this agreement without written notice.
- The parties declare that they accept the terms of this agreement.
📌 DEBTOR (Party Responsible for Paying the Debt)
Name-Surname / Title: [Debtor Name]
Signature: __________
📌 CREDITOR (Debtor)
Name-Surname / Title: [Creditor Name]
Signature: __________
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