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Debt Resolution Agreement Template for Philippines

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Key Requirements PROMPT example:

Debt Resolution Agreement

"I need a Debt Resolution Agreement for a PHP 5 million business loan between our manufacturing company and ABC Bank, with a structured payment plan starting March 2025 and including collateral provisions for our factory equipment."

Document background
The Debt Resolution Agreement is a crucial legal instrument used in the Philippines when parties seek to formalize arrangements for settling outstanding debt obligations. This document becomes necessary when a debtor faces challenges in meeting original debt terms and both parties agree to modify these terms for mutual benefit. It's particularly relevant in scenarios involving loan restructuring, payment plans, or debt settlements. The agreement must comply with Philippine legislation, including the Civil Code, Financial Rehabilitation and Insolvency Act, and BSP regulations. It typically outlines the original debt, current outstanding balance, new payment terms, and consequences of default. This document is essential for both corporate and individual debt resolution scenarios and can be used across various industries where debt restructuring is needed.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including the creditor(s) and debtor(s), with their complete legal names and addresses

2. Background: Recitals explaining the context of the original debt, current situation, and the parties' intention to resolve the debt

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Acknowledgment of Debt: States the original debt amount, current outstanding balance, and acknowledgment by the debtor of the debt's validity

5. Terms of Resolution: Details the agreed resolution method, including payment amount, schedule, and any reduction or concessions

6. Payment Terms: Specifies payment mechanics, including method of payment, due dates, and processing details

7. Default Provisions: Defines what constitutes default and the consequences of defaulting on the agreement

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

9. General Provisions: Standard clauses including entire agreement, amendments, notices, and governing law

10. Execution: Signature blocks and execution requirements for all parties

Optional Sections

1. Security Provisions: Include when the debt resolution is secured by collateral or guarantees

2. Release Provisions: Include when partial debt forgiveness is part of the resolution

3. Confidentiality: Include when parties wish to keep the terms of resolution private

4. Tax Considerations: Include when the resolution has significant tax implications for either party

5. Insurance Requirements: Include when insurance must be maintained on any collateral

6. Third-Party Rights: Include when other creditors or guarantors have interests in the debt

7. Alternative Dispute Resolution: Include when parties agree to specific dispute resolution mechanisms

8. Force Majeure: Include when parties want to address potential extraordinary circumstances affecting payment ability

Suggested Schedules

1. Schedule A - Debt Calculation: Detailed breakdown of the original debt, accrued interest, fees, and current balance

2. Schedule B - Payment Schedule: Detailed payment schedule showing dates, amounts, and running balance

3. Schedule C - Collateral Details: Description and documentation of any security or collateral (if applicable)

4. Schedule D - Original Loan Documentation: Copies or references to the original loan agreements and related documents

5. Appendix 1 - Contact Information: Detailed contact information for all parties and their representatives

6. Appendix 2 - Payment Instructions: Detailed banking or payment processing instructions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions














































Clauses


































Relevant Industries

Banking & Financial Services

Legal Services

Real Estate

Retail

Manufacturing

Construction

Healthcare

Education

Technology

Hospitality

Agriculture

Mining

Transportation

Telecommunications

Relevant Teams

Legal

Finance

Credit & Collections

Risk Management

Treasury

Compliance

Corporate Secretariat

Debt Recovery

Account Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Manager

Collections Manager

Legal Counsel

Corporate Lawyer

Debt Recovery Specialist

Risk Manager

Account Manager

Treasury Manager

Financial Controller

Compliance Officer

Business Development Manager

Recovery Officer

Credit Analyst

Financial Advisor

Corporate Secretary

Banking Officer

Restructuring Specialist

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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