Debt Acknowledgement Letter

The Debt Acknowledgement Letter is a document that confirms that the debtor owes the creditor money. The debtor is a party that owes money to the creditor. This document shows concrete proof that the debtor owes a certain amount of money, as it contains an admission of liability to repay the debt.

This document is used by a creditor to obtain proof that the debtor owes money. It outlines information about the debtor and the debt. It includes the particulars of both the creditor and the debtor, the debt sum, the reason the money is owed, the repayment plan, date of repayment, and the debtor's acceptance of liability. To learn about the procedure for debt collection, the legal guide on How to Recover Debt is available on the website.

How to use this document

This document may be used by a debtor that needs to acknowledge that they owe money to the creditor. A creditor can also use this document as a template for their debtor. This document is different from the Loan Agreement, which is more elaborate as it specifies the terms and conditions of a loan facility. However, this document merely acknowledges a party's debt.

In this document, the party using this document will enter all the required information about the parties to the transaction and the debt. After completing the document, the debtor should sign the document and each party will keep a signed copy of the document for their record.

If either of the parties is a company, the common seal of the company, either two directors or one director and one company secretary should sign the document and the common seal of the company may be affixed unto the document. If either of the parties is any other organization other than a company, an officer of the organization should sign the document, and one witness should attested to the document.

Once debtor signs this document, the debtor becomes liable to repay the debt sum together with all interests and miscellaneous charges attached to the debt.

Applicable law

There are no specific laws that regulate the Debt Acknowledgement. However, the rules of contract apply to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.