Forebearance Agreement - letter format

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This Forbearance Agreement (Letter Format) prevents a creditor from receiving immediate payment on indebtedness. This agreement sets out all relevant terms and must be signed by both creditor and debtor.

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This Forbearance Agreement in Letter Format will prevent a creditor from receiving immediate payment on indebtedness. This agreement sets out the name of both creditor and debtor, amount of debt and calculated interest and steps the debtor is taking to repay the debt. It also sets out a new repayment schedule, the balance due after all payments are made and if a subordination agreement should be entered into by any shareholders of debtor. It is imperative that this agreement be clearly understood and set out in writing. A written Forbearance Agreement - Letter Format will prove invaluable in the event there are disagreements or misunderstandings if debtor defaults on any payments under this agreement.

This Forbearance Agreement - Letter Format contains the following provisions:
  • Creditor and Debtor Information: Sets out the names of the creditor and debtor and the amount of indebtedness (including any interest);
  • Repayment: Sets out any steps which are being taken by debtor to facilitate repayment of the debt and additional capital to be injected into debtor's company;
  • Deferred Repayment: Amount of deferred repayment including the rate of interest, total amount of monthly payments and date of first payment;
  • Subordination: Sets forth if a subordination agreement should be signed by any shareholders of the debtor;
  • Additional Conditions: Sets out any additional conditions to this agreement which should be entered into;
  • Signatures: This letter must be signed by both the creditor and debtor.

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This attorney-prepared packet contains:
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  2. Forbearance Agreement - Letter Format
State Law Compliance: This form complies with the laws of all states
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
Number of Pages5
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28667
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
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