Deed of Debt ForgivenessA Deed of Debt Forgiveness may be used by a lender to forgive a debt owed by a borrower.
A Deed of Debt Forgiveness is typically used when an individual owes debt and is struggling to make repayments. This template deed allows the debtor to stop payments on outstanding debt, effectively "forgiving" the lender.
What does the Deed of Debt Forgiveness cover?
Terms and conditions concerning forgiveness of the debt.
The effective date of forgiveness.
What are the benefits of having a Deed of Debt Forgiveness?
A Deed of Debt Forgiveness is beneficial for both the debtor and the creditor because it can:
Provide clarity and certainty about the release of the debt, ensuring that both the debtor and the creditor understand the terms of the forgiveness, particularly in case of potential future disputes.
Grant financial relief by eliminating debt that may be causing financial hardship.
Provide legal protection for both the debtor and the creditor by ensuring that the debt is formally cancelled and that there can be no future claims or legal action related to the forgiven debt.
Maintain a positive relationship between the debtor and the creditor. By formalising the forgiveness of the debt, it can demonstrate goodwill and a willingness to work together in the future.