This document basically outlines what you owe, to whom and why and how this debt will be settled. You will most likely be familiar with some of the contents from several forms you may have filled out for a personal or home loan or whatever type of credit.

This agreement is a sample template and is of a universal temperament. Particular add-ons and modifications may be necessitated to match your exact requirements.

To use your company stationery, delete the header.

ACKNOWLEDGEMENT OF DEBT

I, the undersigned, (Name)                                                                                                                                                                           

hereby recognize that I am jointly and severally accountable to (Company Name)                                                                                       

(hereinafter denoted as “the Creditor”) in the total of _________________ (hereinafter denoted as “the Amount”) and I jointly and severally assume to pay to the order of the Creditor the Amount coupled with interest at the rate of ______ % per annum from the _________________ day of _______________ year _____________ to the _________________ day of _______________ year ______________ dependent on the subsequent terms and conditions :

The full Amount alongside the interest as cited shall be due and payable to the Creditor on the ____­­­____ day of ____________________ year ___________ at _________________________________________ devoid of bank charges and commission.

In the event of default, I shall be responsible jointly and severally for all legal costs incurred during the collection of the unsettled balance on the extent as between attorney and personal client with commission on the Amount, interest and costs, plus interest at the rate of ___________ % per annum. Interest shall be computed and capitalized on the same day of every month, in arrears, on the outstanding balance until the Amount due has been compensated.

I hereby desire as my domicilium et executandi for every purpose hereof, the following address :

Name                                                                                          

Address                                                                                      

The Creditor will be at liberty to raise the interest rate periodically to the utmost rate certified by law.

I hereby allow to the jurisdiction of the Magistrate’s Court having authority over me with reference to all legal actions taking place here from.

The Creditor may yield or guarantee its rights herein exclusive of my approval.

It is decided that I may disburse any fraction of the Amount plus interest prior to the due date not derogating from any privilege I may have in terms hereof.

The Amount plus interest will become due and payable immediately on a provisional order of insolvency on myself.

SIGNED at ________________________________ on this ________ day of ____________ year _______.

AS WITNESSES :

1.                                                                                                                                                                                                                                                            (EMPLOYEE SIGNATURE)

2.                                                                           

SIGNED at ________________________________ on this ________ day of ____________ year _______.

AS WITNESSES :

1.                                                                                                                                                                                                                                                             (CREDITOR SIGNATURE)

2.                                                                           

Husbands and/or wives may be accountable for debts acquired by the other taking the nature of the debt and where the couple lives into account. If both husband and wife have co-signed for the arrears, both should be liable for settling it.

Though they haven’t co-signed, if the debt is regarded as a family disbursement, a husband and wife can be answerable for each other’s debts too. Various states have family expense laws that make a husband or wife responsible for outlays incurred for the family’s gain, although the other spouse didn’t sign for or authorize the outflow beforehand. Nevertheless other states enforce the family expense obligation by common law devoid of a ruling. Therefore, if the wife runs up bills for groceries at the neighborhood supermarket or took the kids to the family dentist for a checkup, the husband may be legally responsible for these expenses are the family’s sake.

Conversely, if the wife swiped the card for a personal pampering in the salon or the husband purchases luxury watch for him, the other spouse usually wouldn’t be accountable except if he or she co-signed for the debt.

But a spouse normally isn’t answerable for debts the other spouse introduced into the marriage. Such debts belong to the spouse who acquired them. In numerous states though, a debt incurred prior the marriage (including a child support debt) could be collected from marital property of a new marriage.

It is frequent for establishments that loan money to small businesses to require personal assurances of imbursement from the owner of the business, and not only from the business itself. In case the debt is not settled, lenders would want as many bank accounts to access into as they can. If the owner of the business has possession of a home, the lender may like to employ the home as collateral for the business loan. That implies that the spouse of the business owner, in conjunction with the business owner, may be requested to affix their signatures on a contract placing the home as collateral. In consequence, the home could be taken away if the business cannot settle its debts.

Wives and husbands are unconstrained to start credit accounts in their individual names. Creditors cannot oblige a spouse to co-sign on an account except if the party seeking credit resides in a community property state, in which case both signatures can be necessitated as spouses are responsible for each other’s debts incurred throughout the marriage.