Agreement debt

The main reason for landing in grave trouble after already being in debt to a particular
creditor is the insufficiency of funds and repayment plans.In order to dissipate the
hazards of the excessive debts, one must consider the option of the debt agreements.

The option of debt agreement helps the debtor to get engaged in the legal obligation with
the creditors.The elements of the agreement are simply official compromises made
between the creditor and the debtor.The debt agreements tend to erase the unwanted
discrepancies that exist in the previously chalked out debt contract.

The actual interpretation of this kind of agreement features a payment that is less than the
full amount of the debts.The agreement also offers a moratorium on the repayment of the
debt amount.In case the payment is to be realized as means of possible transfer of
property, the debtor does so to the creditor in partial or full payment.Another feature is
the periodic payments to the creditor out of the available money in order to somewhat
lessen the burden of the huge debt amount.

The option of debt agreement can be taken into practice if the debtor fulfills certain
conditions and financial eligibilities.The first requirement is that the debtor should have
never faced bankruptcy; neither should he/she have utilized the debt agreement in the last
10 years.The debtor should also have an income (after tax exclusion) of up to $59,000
annually.The debtor also should be having unsecured debts of not more than $80,000.The
debtor should also be insolvent.The term insolvent means that the debtor is not in the
financial condition of paying his debts according to the terms of the existing debt
contract.However, the term is different from bankruptcy.By engaging in the process of
debt agreement, one is conforming to another form of bankruptcy.

The debt agreement helps to nullify the unsecured debts after the acceptance of debt
agreement option by the creditors.This further enables the debtors to re-pay the debts
over a longer term and this also reduces the amount to be paid at the stipulated time-
period.In the case of being unable to pay the debts, usually the majority of creditors will
agree to accept the option of debt agreement.However, by entering into such a legal
arrangement with the creditors, a weekly payment system will be established. Since the
function of debt agreement is registered with the National Personal Insolvency Index
(NPII), the credit history of the debtor does not get hampered on the negative side.

In case the creditors reject the proposal of entering into the debt agreement, then the
professional debt management agencies help to re-submit the application and then further
process the task.If the creditors again reject the application, then the debts of the debtor
are revived.The proceedings ensued at this stage would be the collection of payment
along with the cumulated interest amount through proper legal ways.Hence debt
agreement is a process which has proven beneficial for the debtors on a consistent basis.

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 Debt Payment Agreement Letter
7th may, 2010

Shezan International ltd.

56-Bund Road,
Lahore, 54500, Pakistan
+92-042-7466900 (Phone)
+92-042-7466899 (Fax)

United Bank Limited, City Branch

UBL Building,
I.I.Chundrigar Road,
Karachi-74000, Pakistan.

RE: Your {letter dated} or {phone call on date} reference account #: {place account or
reference number here}

Dear Mr. Iftikhar Chaudhary

According to my records and your {phone call or letter} the balance of this debt is
$ 402,600. I am not disputing this debt however; my current financial situation prohibits
me from paying the amount you're demanding. I am able to make payments on this
account every {insert date of month} to your company in the amount of $30,000.

I would appreciate a call from you confirming your acceptance of my payment terms.
However, if I do not hear from you, I will consider your cashing or depositing my check
as confirmation that you accept my payment terms. If you do not accept my terms then I
expect the enclosed payment to be returned to me immediately in the enclosed self-
addressed stamped envelop.

As a show of good faith I've enclosed my first payment in the amount of $30,000. If my
financial situation improves enough for me to increase my payment amount I will contact
you immediately. Thank you for understanding.

Sincerely,

Saifi Chaudhary

Signature
56-Bund Road,
Lahore, 54500
Pakistan
+92-042-7466900 (Phone)
+92-042-7466899 (Fax)