Publication date: 01.02.2024
Hello! My name is Kyrylo Tomakh, I am a practicing lawyer and co-founder of the law firm DKVA Legal Group. For over 3 years, I have been helping clients protect their rights, find solutions to complex legal situations, and successfully resolve disputes both pre-trial and in court.
The legal position of a settlement agreement (peace agreement) with the creditor is an agreement between the debtor and the creditor regarding the settlement of the debt obligation without the involvement of the court or other departmental bodies. This can be useful in situations where the debtor cannot fully meet his financial obligations and both parties wish to avoid legal proceedings or other problems.
The main elements of a settlement agreement may include:
Debt reduction:
The agreement may provide for the reduction of the total amount of debt or the definition of new terms for repayment of the debt.
Installment payments:
The creditor may agree to installment payments or establish a flexible debt repayment schedule.
Definition of new conditions:
The agreement may specify new terms for repaying the debt, such as reducing the interest rate or specifying a new repayment term.
Determination of payment possibilities:
The agreement may provide for the possibility of repaying the debt through installments or partial payments.
Disclaimers:
The agreement may specify conditions under which the parties are released from liability for certain violations of the agreement.
Signing the agreement:
- Both parties must sign the agreement for it to be valid and enforceable.
- It is important to consider that the settlement agreement is a document that must be observed by both parties. If one of the parties does not fulfill its obligations under the agreement, the other party can go to court to resolve the dispute.
- If you have questions or concerns about entering into a settlement agreement with a creditor, I recommend that you consult a lawyer or financial law professional for specific advice based on your specific situation.
Given that a settlement agreement is a complex legal document where it is crucial to clarify all terms and mutual obligations, here are additional aspects that may be important:
Assignment of duties:
The agreement must clearly define the obligations of both parties. This may include determining the terms and conditions of repayment of the debt, as well as any additional obligations.
Privacy:
The agreement may include a confidentiality clause so that both parties undertake not to disclose the details of the agreement to third parties.
Cancellation of legal proceedings:
A settlement agreement may provide for the cancellation or suspension of legal proceedings that were initiated prior to the conclusion of the agreement.
Repayment of interest and fines:
Determining the possibility of repayment of accrued interest or penalties that may be imposed for late payments.
Disclaimer:
The agreement may include a waiver of any claims or lawsuits regarding disputed matters.
Protection from further claims:
The agreement must clearly state that it is the final and conclusive agreement between the parties, releasing them from further claims against each other.
Disclaimer:
The possibility of including clauses that release the parties from responsibility for events that occurred before the conclusion of the agreement.
When finalizing a settlement agreement, it is important to understand all aspects and make sure that the agreement is in the interests of both parties. If necessary, it is always recommended to consult a qualified lawyer for advice and to determine the best strategies in a particular situation.
