Installment Agreement

THIS AGREEMENT by and between [Name of company] having its principle offices located at [Address], hereafter referred to as "Company" and [Name] of [Address] hereby referred to as "Client"

The Company has reviewed client’s budget and prepared a debt management plan to assist client in their effort to reduce debt with affordable payments.

The Company will deposit client’s funds in trust account and disburse to client’s creditors on a percentage basis.

The Company will provide client with a monthly statement accounting for all the funds received from client and payments made on client’s behalf.

The Client gives the Company the right to negotiate new payment arrangements with creditors. Most creditors support and work with the Company, but we cannot guarantee that all creditors will accept our proposal. The Company will do all we can to arrange payments all parties can accept.

The Company may divulge personal information to creditors regarding total indebtedness, ability to pay, etc., when deemed necessary to negotiate final payment arrangement.

Client understands that as a non-profit agency, the Company may receive donations from creditors, though no creditors are required to make donations to the Company.

Client agrees not to obtain further credit without consulting with the Company and to adhere to the budget, which has been established by and with a Company counselor.

Client is responsible to monitor their creditors’ statement to ensure correct and timely posting of payments. Client will inform the Company if there is any problem with incorrect information showing on the creditor’s statement.

The following type of accounts cannot be accepted in our Debt Recovery Program:

Loans with secured collateral

Student Loans

Loans involving co-signers unless the co-signer has also signed our agreement forms.

The Company is not responsible for any litigation, which is in process or may arise in the future between client and creditor the Company in no way assumes liability for client’s debt. This agreement does not release client from the original contract with creditors.

The Company is not responsible for any delay in payments to creditors due to U.S. mail delivery.

The Company is not responsible for information placed on credit reports by creditors. The Company will strive to meet creditor due dates, but is not responsible for late payments due to payments missed by client.

Client will pay an initial enrollment fee of [$------] upon execution of this agreement to help cover costs of opening the account and creditor negotiations.

Client agrees to deposit a total payment of $------ starting on the 5th ________ and/or 20th ______ of each month beginning _______. (Client may choose to make one monthly payment or skip the payment into two payments per month) This total payment includes the monthly administration fee to be determined by the counselor using the Company sliding scale method. This administration fee is calculated at $------ and may be deducted from client’s monthly deposit.

Client or the Company may terminate this agreement at any time by giving written notice. If this agreement is terminated, all fees paid will be considered earned by the Company. Client agrees not to hold the Company, it’s employees, officers, counselors, volunteers, etc., responsible for any liability whatsoever that may arise from the Company efforts to assist the client.

Transfer Of Rights. This Agreement shall be binding on any successors of the parties.

Arbitration. Any disputes pertaining said agreement being affairs that cannot be settled amicably shall be submitted to an arbitrator under the Rules of the American Arbitration Association in the City of [city], whose award may be reduced to judgment in any court of competent jurisdiction.

Amendment. This Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties.

Severability. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

Waiver Of Contractual Right. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

No Representation. Neither party has made any representations nor promises, other than those contained in this agreement or in some further writing signed by the party making the representation or promise.

Interpretation. This Agreement will in all events be construed as a whole, according to its fair meaning, and not strictly for or against a party merely because that party (or the party's legal counsel) drafted the Agreement. The headings, captions, and titles in this legal Agreement are merely for reference and do not define, limit, extend, or describe the scope of this Agreement or any provision herein. Unless the context requires otherwise, (a) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine, and neuter, and (b) the word including means including without limitation.

Advice Of Legal Counsel. Each individual party to this Agreement represents and warrants to each other party that such party has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, and has executed this Agreement based upon such party's own judgment and advice of independent legal counsel.

Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law, then that provision will be fully severable. This Agreement will be construed and enforced as if the illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid, or unenforceable provision, there will be added automatically, as a part of this Agreement, a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid and enforceable.

Automactic Renewal. This Agreement will automatically renew, for successive 12 month periods, after its expiration unless written notice of termination is given by either party.

Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each party to this Agreement will execute and deliver any additional documents and perform any additional acts that may be necessary or appropriate to effectuate and perform its obligations under this Agreement and the transactions contemplated hereby.

Entire Agreement. This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.

Applicable Law. This Agreement shall be governed by the laws of the State of _______.

Dated: ____________.

_________________________________

Client Signature

_________________________________

Counselor Signature

_________________________________

Co-Client Signature

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