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Debt Resolution Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Debt Resolution Agreement

"I need a Debt Resolution Agreement for my manufacturing company in Hong Kong to restructure HKD 5 million in outstanding debt owed to three different creditors, with a planned repayment schedule starting March 2025 and including quarterly payments over 3 years."

Document background
The Debt Resolution Agreement serves as a crucial legal instrument in Hong Kong's financial and legal landscape, providing a formal framework for resolving outstanding debt obligations between parties. This document is typically used when a debtor faces difficulties meeting original payment obligations and seeks to establish a revised, mutually acceptable payment arrangement with creditors. The agreement, governed by Hong Kong law, includes essential elements such as debt acknowledgment, revised payment terms, interest calculations, and enforcement mechanisms. It's particularly valuable in preventing formal bankruptcy proceedings while offering protection to both creditors and debtors. The document must comply with Hong Kong's Contract Ordinance, Bankruptcy Ordinance, and relevant financial regulations, making it a legally enforceable solution for debt restructuring.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including the creditor(s) and debtor(s)

2. Background: Outlines the existing debt situation and the purpose of entering into this resolution agreement

3. Definitions: Defines key terms used throughout the agreement

4. Acknowledgment of Debt: Formal acknowledgment of the total debt amount and its composition

5. Payment Terms: Details of the agreed payment plan, including amounts, frequency, and payment methods

6. Interest and Fees: Specification of any interest rates and additional fees applicable

7. Default Provisions: Consequences and remedies in case of payment default

8. Representations and Warranties: Statements of fact and promises made by both parties

9. Confidentiality: Provisions regarding the confidentiality of the agreement and its terms

10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes

11. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Security Arrangements: Include when the debt resolution is secured by assets or guarantees

2. Third-Party Guarantees: Include when there are guarantors involved in the agreement

3. Debt Write-Off Provisions: Include when part of the debt is being written off subject to conditions

4. Early Payment Incentives: Include when offering discounts or benefits for early or lump-sum payments

5. Credit Reporting Obligations: Include when there are specific agreements about credit report updates

6. Dispute Resolution: Include when specific mediation or arbitration procedures are preferred over court proceedings

7. Business Continuation Terms: Include when the debtor is a business and ongoing operations need to be addressed

Suggested Schedules

1. Schedule 1 - Debt Breakdown: Detailed breakdown of the total debt amount, including principal, interest, and other charges

2. Schedule 2 - Payment Schedule: Detailed payment plan showing dates, amounts, and running balance

3. Schedule 3 - Security Details: Details of any security or collateral provided

4. Appendix A - Supporting Documents: List of original loan agreements, statements, or other relevant documents

5. Appendix B - Contact Information: Detailed contact information for all parties and authorized representatives

6. Appendix C - Payment Instructions: Specific banking or payment processing details

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses






























Relevant Industries

Banking & Financial Services

Legal Services

Debt Collection

Real Estate

Retail

Manufacturing

Professional Services

Construction

Healthcare

Hospitality

Technology

Education

Relevant Teams

Legal

Finance

Credit Control

Collections

Risk Management

Compliance

Treasury

Corporate Advisory

Debt Recovery

Business Recovery

Relevant Roles

Chief Financial Officer

Financial Controller

Credit Manager

Collections Manager

Legal Counsel

Debt Recovery Specialist

Risk Manager

Compliance Officer

Account Manager

Finance Director

Corporate Lawyer

Insolvency Practitioner

Treasury Manager

Financial Advisor

Business Recovery Specialist

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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