# Debt Settlement Agreement

**IRI:** https://folio.openlegalstandard.org/R8Z8mgzQJKr4AXj2mEJg2ST

## Labels

## Definition

A Debt Settlement Agreement is a legally binding contract between a debtor and a creditor that outlines the terms for resolving a debt for less than the original amount owed. The agreement specifies the reduced amount to be paid, the schedule for payment, and conditions under which the remaining debt will be forgiven or considered settled.

## Sub Class Of

- https://folio.openlegalstandard.org/R7ddsah86bL3tQ5OmO9B7PB

**Deprecated:** False