Possible options for debt repayment agreements. Debt installment agreement

One way to change the obligation is to enter into an installment agreement. This is the same debt restructuring that is actively used by business entities and banks. Unlike similar agreements on compensation and offset, installment of a debt means nothing more than a change in the obligation, but not its termination.

The terms for repayment of the debt can be changed by the parties by agreement at any stage, before going to court or as part of enforcement proceedings. But in different ways. You can use an additional agreement to the contract, an amendment to the contract.

When a debt has already arisen and it is difficult to pay, use a debt installment agreement before going to court.

Debt installment agreement

Example of an installment agreement

Debt installment agreement

Taganrog, Rostov region November 27, 2021

Kondakov Ilya Vladimirovich, born on May 11, 1987, passport of a citizen of the Russian Federation series 13 79, issued by TOM of the Northern District of Taganrog on May 20, 2005, registration address: Russia, Rostov region, Taganrog, st. Vesennyaya, 12, referred to as “Creditor”, on the one hand, and

Dmitry Pavlovich Larichenko, born October 10, 1990, passport of a citizen of the Russian Federation series 67 91, issued by the Department of the Federal Migration Service of Russia for the Rostov Region in the Central District of Rostov-on-Don on October 15, 2015, registration address: Russia, Rostov Region, Taganrog, st. Svetlova, 17, apt. 24, hereinafter referred to as "Debtor", on the other hand,

collectively referred to as the “Parties”, have entered into this agreement as follows:

The subject of this agreement is the provision of installment plans for the repayment of the principal debt and contractual penalties under the loan agreement between the Parties dated August 11, 2021.
The debt of the Debtor to the Creditor as of the date of signing this agreement is 58,000 rubles, including the principal debt - 50,000 rubles, contractual penalty - 8,000 rubles.
The creditor under this agreement undertakes:

provide the Debtor with an installment plan to repay the debt specified in clause 2 of this agreement for a period of 3 months, starting from November 27, 2021 until February 28, 2021.

suspend the accrual of interest and contractual penalties on the amount of the principal debt under the loan agreement dated August 11, 2021, subject to the debt repayment schedule;

do not apply to the courts for debt collection until the debt is fully repaid, subject to timely repayment of the debt in accordance with the schedule established in clause 4 of this agreement.

The debtor undertakes to repay the debt in the amount specified in clause 2 of this agreement in accordance with the following schedule:

In case of violation of the terms of repayment of the debt established in clause 4 of this agreement, the Debtor is liable in the form of an obligation to pay a penalty in the amount of 10% of the total amount of debt established in clause 2 of this Agreement for each day of delay.
This Agreement comes into force on the date of signing by the parties and is valid until the Debtor repays the debt in full, but no later than February 28, 2021.
The Agreement is drawn up in two copies having equal legal force, one for each of the Parties.
Details and signatures

Statement of claim for debt collection under the contract

A claim for debt collection must be drawn up according to the general rules of procedural law.

NOTE : Filing a claim is not always required. In cases established by law, taking into account the amount of debt, the claimant is obliged to apply for the issuance of a court order.

What should the claim contain?

An indication of the court in which the claim is being filed;

Information about the plaintiff (full name or name, if an organization, address of residence or location (legal address and/or postal address), TIN for the organization when applying to arbitration. You can specify telephone numbers, email address);
Information about the defendant (full name or name, address information, TIN for the organization. If known, then telephone number and email address);
The value of the claim is the amount of the claims. Amount of state duty;
The name of the procedural document is “statement of claim”;
The text of the claim must contain an indication of the circumstances in connection with which the plaintiff goes to court, information about compliance with the claim procedure, a link to evidence that confirms the circumstances and requirements of the plaintiff, references to the rules of law;
The pleading part of the claim must directly contain the plaintiff’s demand, i.e. what amount of debt should be recovered from the defendant in favor of the plaintiff;
The appendix lists the documents attached to the claim;
The claim is signed by an authorized person.

USEFUL: watch also the video with additional advice from a lawyer on filing a claim in court

Contents of the debt installment agreement

You can propose to change the procedure for repaying the debt orally, as well as by sending a corresponding proposal in writing. In addition to the details common to all agreements, such as date and place, parties, effective date, number of copies, pay special attention to:

– fixing the amount of the principal debt, penalties, fines and penalties

– drawing up a debt repayment schedule: indicate specific dates (by date), amount of payments, method of repayment (cash, non-cash)

– suspension of the accrual of penalties, interest, their increase or decrease

– application (non-application) of penalties up to and including termination of the contract in case of violation of the schedule.

If the court decision to collect the debt has taken place, instead of an agreement on the debt installment, enter into a settlement agreement or file an application with the court to change the procedure for executing such a decision.

Drawing up a document on installment plans between legal entities

A business paper is drawn up as follows:

Document's name.
The city and date of compilation are indicated.
Participants of the agreement. In this case – the name of the legal organization, then “Creditor”, the name of the organization, then “Debtor”.
On what basis did the debt arise?
Amount of debt.
How will payment be made?
Payment schedule.
Amount of fines, accrued interest for late payment.
Applicable sanctions in case of violation of obligations under this agreement.
Details of the parties. If, in the case of individuals, only passport data is sufficient, then this document must contain full details.

Such as:

Name of the organization;
legal address;
current account, in which bank it is located;
BIC;
K/s;
TIN/KPP;
indication of the position of the person signing the contract, on the basis of which the right to sign arose;
the signature itself with a transcript;
print.

Agreement on installment payment of debt between legal entities. The sample can be downloaded here.

When drawing up business paper, it is important to remember that the dates and terms of payments specified in the agreement earlier change from the moment of signing this agreement.

If the organization was unable to agree with the opponent pre-trial on an installment plan and the court hearing took place, the company can enter into a settlement agreement or file an application to change the procedure for executing the decision.

Typically, an organization has its own sample document drawn up by in-house lawyers. At the moment, there are many law firms where representatives of the company will be assisted in drawing up business papers or simply given a sample agreement on installment payment of debt.

How to conclude a debt installment agreement

The loan repayment period is determined at the stage of concluding the contract, but can be changed at any time by agreement of the parties or through the court. To receive an installment plan, the borrower must write an application and contact the lender with a request for the service. The application should indicate the circumstances that caused the delay in payments, as well as attach documents confirming them. The debt installment agreement specifies the following information:

the amount of debt on the loan, including interest, fines and penalties;
a new loan payment schedule with the specified amount and deadline for the monthly payment, repayment method, etc.;
confirmation of the suspension of the accrual of fines and penalties on the loan;
notification of the application or cancellation of penalties.

If enforcement proceedings have been opened against the defaulter, installment payments can only be made through the court, by concluding a settlement agreement with the creditor or by submitting an application for installment payment of the court debt.

Installment of legal debt

In a decision in a civil case, the borrower has the right to an installment plan for the execution of the court decision, which is provided for in Articles 203 and 434 of the Code of Civil Procedure of the Russian Federation. The grounds for receiving it may be:

difficult financial situation;
circumstances preventing the payment of the debt in accordance with the writ of execution;
other reasons.

An advantage for the borrower will be the addition to the application for installment plan of an acceptable debt repayment schedule or voluntary repayment of part of it - preferably before the opening of enforcement proceedings. In addition to the application, the following documents will be required from the defendant:

a certificate in form 2-NDFL confirming the level of official income, a document confirming the assignment of a pension or benefit;
receipts for payment of housing and communal services or government services, statements of alimony payments and other documents confirming mandatory monthly expenses;
summonses, certificates, statements, orders and other documents confirming the grounds for granting installment plans.

Obtaining an installment plan for legal debt is possible, but it requires compelling reasons and a large number of documents. It is more profitable and easier to reach an agreement with the creditor out of court, and if it is impossible to arrange an installment plan, try to restructure the debt in other ways.

Ways to restructure loan debt

To restructure the loan debt, the borrower does not have to wait for the creditor to go to court. It is necessary to contact the bank branch immediately after the delay occurs with clarifications and a completed application. The creditor will independently determine the method of debt restructuring based on the client’s situation and offer several payment options that satisfy both parties.

Credit holidays

The bank suspends loan payments for a fixed period of time, giving the borrower time to improve their financial situation. The freeze often affects only the loan body or interest, and in rare cases the lender gives a complete deferment of all payments.

Changing the repayment schedule

Extending the term of a loan agreement allows you to extend payments over a longer period than was originally established. Thanks to this, the borrower gets rid of the consequences of failure to fulfill the terms of the loan agreement, but ultimately overpays on interest, which continues to accrue for the entire period of using the loan.

Interest rate reduction

In rare cases, the bank agrees to change the interest rate, commissions and fines on the loan, which is associated with inevitable financial losses for it. This reduces the size of the monthly loan payments and its final cost, regardless of the repayment period.

Sale of collateral

The sale of collateral allows you to fully or partially pay off loan debts faster than other methods. To do this, the loan must have collateral, which the borrower can sell with the permission of the lender and use the proceeds to pay off the debt.

Using one of the loan restructuring methods is the best solution for a borrower facing financial difficulties or other circumstances that prevent him from conscientiously fulfilling the terms of the loan agreement.

Preservation of obligations

The installment plan itself does not cancel the obligation to return. It is intended only to reduce the intensity of the debt burden on the debtor, giving him the opportunity to repay the debt gradually.

As a rule, agreements of this type involve dividing the body of the debt into several equal parts, which the debtor will repay within the time limits established by the payment schedule. The most common option is monthly payments in equal parts until the debt and interest on it are fully repaid.

Deferment and installment payments should not be confused. The deferment only provides for the postponement of repayment of the debt in full for a certain period. That is, to put it simply, the debtor will return the same million rubles, but not in May, but in September.

Debts for housing and communal services

Often, the consumer of utility services does not have direct contracts with the providers of these services. That is, in fact, being a consumer, he is not actually bound by contractual obligations to pay for these services.

Therefore, suppliers limit the supply of services to the debtor without going to court. In addition, a number of restrictions are imposed on the debtor, or rather the owner of the living space. For example, even if he is low-income, he cannot qualify for compensation for housing and communal services and other benefits.

In this case, concluding an agreement is beneficial to both parties. Thus, service providers receive consumer recognition of the existence of a debt and an obligation to repay it. And the debtor, in turn, removes restrictions on receiving compensation, since he ceases to be among the willful defaulters, and also receives an installment plan to repay the debt for a period of 3 months to 1 year.

Application of installments

Installment payments can be applied both in the process of voluntary repayment and in the process of forced collection of debt by court decision.

If the case does not go to court, then the installment plan can be established by agreement between the creditor and the debtor, drawn up in writing in the form of an additional agreement to the contract.

If the bailiff has already received a writ of execution for execution, then the installment plan can be established in two ways:

a mutual written agreement between the debtor and the collector, which they will submit to the bailiff for approval of the payment schedule;
application by the debtor to the bailiff for payment by installments. If there are no options for one-time execution, the bailiff will provide an installment plan.

Is it necessary to pay with property?

If we are talking about a voluntary transfer, then it is possible only on the initiative of both parties to the agreement. If the property is not pledged at the conclusion of the contract, no one has the right to oblige the borrower to use it to pay off the property. If a creditor names you as a debtor and tells you that they will demand property from you against your will, it is most likely fraud or misrepresentation. Forced collection is possible only by court decision, and competent creditors try not to initiate legal proceedings. For a conscientious organization, the priority is to relieve the client of the credit burden, so it will offer the widest possible range of options for solving the problem. If you do not want to pay off the debt with property, it is quite possible that you will be able to agree on a restructuring or an individual payment schedule.

Payment schedule

The installment plan provides for the frequency of payments. During the negotiations, the debtor and the collector not only agree on the installment plan, but also agree on the terms. Typically, an installment agreement provides for monthly payments consisting of a portion of the debt and interest thereon.

If we assume that before the installment plan agreement, the debtor owed interest, then the existing interest arrears will also be included in the payment schedule.

As a document, a payment schedule is a list of calendar dates on which the debtor must make the next payment. The text of the agreement itself, together with the payment schedule, is attached to the main agreement and becomes an integral part of it until the obligations are fully fulfilled.

Collection of obligations

Loans have become a part of our lives. It seems that problems of lack of money are easily solved. But, unfortunately, not everything goes smoothly. Getting a loan is easy, but paying monthly payments is difficult. Problems begin when the borrower's financial situation changes.

Were you late? The bank will begin collecting the debt under the obligation.

Pledge, penalty, and other methods secure the obligations assumed (Article 329 of the Civil Code).

How to collect funds under an agreement? The bank can take away your apartment or car if they act as collateral for a problem loan.

A penalty cannot be imposed if:

debt is less than 5 percent of the collateral price;
less than three months overdue.

Parties

Installment plans can be applied for any type of debt, regardless of the legal status of the debtor or creditor. That is, debtors and collectors can be both legal entities and individuals.

This means that installment plans can be provided for the following debt obligations:

for utility bills;
under loan agreements;
under loan agreements;
under lease agreements, if during the lease the tenant’s debt to the lessor was formed;
for contributions to the Pension Fund or compulsory medical insurance;
under leasing agreements, etc.

Penalty

An important component of the installment plan is its ability to suspend the accrual of penalties for late repayment of the debt. Since the debtor accepts obligations for installment payment, and the creditor agrees with this, the accrual of the penalty stops from the moment the agreement is signed.

Moreover, the agreement itself may include a condition for the accrual of a penalty in the event that the debtor violates its obligations to repay the debt and misses the payments established by the payment schedule.

Terms of agreement

An offer to provide an installment plan may be sent to the creditor:

orally or in writing;
within the framework of a court hearing with the subsequent execution of a settlement agreement;
by filing a statement with the bailiff.

That is, the form of the proposal is dictated by the accompanying circumstances.

Thus, during a trial, the parties can come to an agreement on the subject of the dispute without waiting for a court decision. In this case, the debtor and the claimant enter into a settlement agreement and declare it to the court with a request for its approval.

An approved settlement agreement is the equivalent of a writ of execution and if the debtor evades repayment of the debt, enforcement of the collection by a bailiff will begin.

You can declare a settlement agreement not only in writing, but also orally. In this case, the oral statement will be entered into the protocol, in which both the debtor and the claimant will have to sign.

Regardless of what stage of debt collection the agreement is drawn up, its text will be approximately the same. Therefore, a sample settlement agreement can be taken as a sample of an additional agreement to a contract and vice versa. The only difference will be in the header.

Thus, settlement agreements, or agreements that are submitted to the bailiff, will contain in the header the name of the judicial authority or the full name of the bailiff.

The agreement, as an addition to the contract, does not contain a “header” at all and begins with the date of drawing up the agreement and the name of the locality in which the agreement was drawn up. For example, “December 15, 2021, Moscow city.”

The text of the agreement must contain the following information and obligations:

name and date of conclusion of the main agreement;
names (or full names) of the debtor and creditor;
the will of the debtor to receive an installment plan;
the will of the creditor to grant a deferment;
the amount of debt on the loan body;
amount of debt on interest;
amount of debt on penalties and fines;
the period for which the installment plan is granted, that is, by what date the debt must be repaid in full;
frequency of payments – once a month, once a week, once a quarter, etc.;
the amount of periodic payments;
payment method – cash, bank transfers, etc.;
the debtor’s consent to suspend the accrual of penalties for the installment period;
payment schedule (it can be included in the text of the agreement or drawn up as a separate document);
penalties for violation of the payment schedule;
signatures of the parties.

The agreement and payment schedule are drawn up in two copies, one for each party. If the schedule was drawn up as a separate document, then the parties sign not only the agreement, but also the schedule.

Changing the terms of the installment plan or payment schedule is permissible either by agreement of the parties or by going to court.

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How do a settlement agreement and an agreement for pre-trial settlement of a dispute compare?

As we indicated in the annotation to the article, the term “pre-trial settlement agreement” cannot be used, since a settlement agreement by force of law is not concluded at the pre-trial stage. The essence of the settlement agreement is that the parties, during the consideration of the case in court, negotiate compromise conditions for resolving the conflict that are favorable to them, put oral agreements in written form, submit them to the judge for approval, and the court issues a ruling by which the case is resolved on the merits, and the settlement agreement is approved .

As for the pre-trial agreement (or settlement), it is concluded between the parties to the dispute at the pre-trial stage, without going to court. There is no need to approve the document by a court order; the parties themselves sign an agreement that contains the terms of the dispute settlement.

The conclusion of such an agreement is purely voluntary; the parties to the dispute themselves decide to resolve the conflict peacefully, on mutually beneficial terms, without involving the judiciary.

Possible options for debt repayment agreements

The parties to the contract came to a common denominator on the possibility of returning the funds provided. At such moments, in order to avoid unforeseen circumstances, both parties enter into a debt repayment agreement, which sets out the option of repaying the current debt.

If the borrower signed such a document, it means that his obligations to the person or organization that provided the loan were not fulfilled. By signing such a document, he automatically agrees to the agreed conditions specified in the text.

Claim for debt collection under the contract

Before going to court, especially arbitration, it is necessary to comply with the claims procedure, i.e. before the trial, contact the debtor with a demand for repayment of the debt.

A claim is something like a future lawsuit. What does the claim include?

The claim must contain information about who it is addressed to, i.e. details of the debtor, full name or name, if it is a legal entity, address of the debtor. You can specify a phone number, email address, INN for the organization.
The claim must be clear from whom it is being sent, i.e. data of the creditor, claimant, future plaintiff.
Most often, claims are printed with the organization’s stamp, which includes the date and number, i.e. information about the internal registration of such a claim.
The document can be called a “claim”. Although the title of the document does not play a big role, the main thing is that it follows from the text that this is a claim.
The text of the claim, as a rule, sets out the circumstances of the formation of the debt, i.e. when, between whom, what the agreement was concluded about, what violations were committed by the debtors that led to the formation of debt, debt calculation. The rules of law on the obligation to properly fulfill assumed obligations, etc. are indicated.
The petition part indicates the requirements of the creditor, i.e. what amount the debtor must return and pay to the creditor. You can specify by what date the return must be made. IMPORTANT: in some courts, most often in the Moscow Arbitration Court, the plaintiff may be refused to accept the claim due to failure to comply with the claim procedure, on the grounds that the requirements in the claim and the demands in the claim differ, for example, in amount. Therefore, it is very important to clearly formulate your requirements in the claim and then duplicate them in the claim.
After the requirements, you can make a reference to the rule of law establishing the period for consideration of the claim or to the clause of the contract that regulates the period for responding to the claim.
At the end of the claim, information is indicated about who is signing the claim and putting a signature.

USEFUL: watch also the video with additional advice from a lawyer on filing a claim

Basis for the agreement

Below it is worth considering the possible grounds under which an agreement can be drawn up and signed by both parties:

Late payments

When completing a transaction, both parties sign one or another agreement on the transaction. Each party assumes the obligations specified in the agreement. It is worth noting that the responsibilities of the parties differ.

Dear readers! Our articles talk about typical ways to resolve legal issues with debts, but each case is unique.

After signing this document, if the promised payments are not received on time, a delay occurs. In this case, the second party to this agreement has every reason to defend its presented demands and interests and can use all permissible legal methods.

If the parties have reached an agreement to resolve their conflict situation without court intervention, then this procedure is called pre-trial. If the debtor voluntarily confirms the late payment or failure to repay the entire loan on time, then such negotiations are considered successful.

The debtor did not dispute the contractual, signed relationship. He did not try to prove that he was right about his rights and obligations. Yes, there are situations when a conflict arises regarding the issue of the amount of debt.

Ways to repay debt are discussed in this video:

A possible refund option is payment in installments

The person who took the loan cannot always be guaranteed to fulfill his obligations; this may be due to completely different circumstances. Sudden additional expenses, which naturally affected the return of monetary obligations.

Often, in such agreements, both parties to the contract can include an additional clause in which they can immediately prescribe a phased return of the main obligation. In this case, this clause will be considered one of the points of the main contract and does not require additional consideration in the future.

If the buyer at any stage understands that he cannot fulfill part of the contractual relationship, but there is no refusal of a certain service or product, then both parties can come to an additional agreement, and the assigned payment will be closed in installments.

Partial repayment of debt between legal entities

If certain circumstances arise, the lender and the borrower may agree on a partial refund. Most often this is due to the insolvency of the person who took the loan.

How to pay obligations with property voluntarily

An agreement on the transfer of property to pay off a debt can be drawn up if both parties agree to it. Often such developments are initiated by the borrower himself, wanting to quickly get rid of obligations. The general terms of the agreement are given in the Civil Code of the Russian Federation, and after it is signed, it is no longer possible to make changes to the document. The agreement usually contains the following information:

type of compensation;
procedure and deadlines for fulfilling obligations;
the amount of debt that will be repaid against the property;
whether the property will be completely transferred or whether it will be partially transferred to the creditor;
Will you need to pay a penalty?

Information about VAT is also recorded in the contract. The debt will be repaid after the property is officially transferred to the creditor, and this will be documented. In the case of real estate, it is possible to sell it, in which it is put up for auction, and the proceeds from it go towards paying off the debt. The remaining amount is returned to the borrower.

Composition of a debt repayment agreement

The agreement to repay the debt incurred is drawn up in writing in 2 copies. One copy remains with the lender, the other copy is provided to the borrower.

Important points in drawing up an agreement:

The reason for the debt is indicated
Description of the parties to a bilateral agreement
Amount of debt incurred
The repayment procedure is long (terms, amounts, etc.)
Prescription of penalties for violation of the repayment schedule.

If the additional agreement is signed by both parties, then the contractual relations of the previously signed agreement have been changed by this agreement. The terms of debt repayment will be governed by an additional agreement. Once signed, it is the main document of credit relations between legal entities and individuals.

The debt repayment agreement begins to operate from the moment of signing and is valid until the debt is fully repaid by the borrower. If the lender made concessions before drawing up the agreement and did not apply penalties to the borrower, then the amount of the penalty and interest on the loan will not be charged.