What is a settlement agreement?
A settlement agreement is an agreement between two parties that settles a dispute related to a legal matter. In Tennessee, a settlement agreement usually involves creditors rights law. Creditors rights law is a legal field that deals with the rights and interests of creditors such as banks and lenders in recovering payments owed to them. In a settlement agreement, the debtor and creditor come to an agreement about how the debt will be paid back. The agreement might include a payment plan, a single lump-sum payment, or other arrangements. The agreement should be written and signed by both parties to ensure that each party understands the agreement and is held responsible for fulfilling the terms of the agreement. The agreement must also contain language that provides for the release of the debtor from any claims related to the debt, and of the creditor from any further claims against the debtor. Settlement agreements can help both parties move on from their financial difficulties and allow creditors to recoup some of what they are owed.
Related FAQs
What is the meaning of “general unsecured debt”?What are the different strategies available to creditors to collect on debts?
What is a non-dischargeable debt?
What is a foreclosure action?
What is a “bankruptcy petition”?
What is a voidable transaction?
What are the remedies available to creditors in a bankruptcy proceeding?
What is a writ of execution?
What is a priority claim?
What is a garnishment?
Related Blog Posts
What You Need to Know About Creditors’ Rights in the Courtroom - July 31, 2023The Law of Creditors’ Rights and How it Affects You - August 7, 2023
The Basics of Creditors’ Rights Law: A Guide for Debtors - August 14, 2023
How to Protect Your Rights as a Creditor - August 21, 2023
How to Utilize Creditors’ Rights Law to Your Advantage - August 28, 2023