III. That this debt will be paid by the DEBTOR within a maximum period of: _____ from the date indicated in the title of this acknowledgment of debt. Once drawn up, this document must be signed by the debtor. In the case of a bilateral acknowledgement of debt, it must also be signed by the creditor. Where the instrument is signed by a representative, the latter shall produce the authorization or, where applicable, an authorization enabling him to do so at the time of signature. In all cases, the document must be signed in duplicate so that each of the parties keeps one copy (in triplicate if there is a guarantee or guarantor). In addition, signing the left margin of all pages of the document (not just the last page) provides more legal certainty for both parties. In the case of the creditor, he has concrete evidence of the economic amount owed by the debtor, which is not necessary to justify the existence of the debt in the event of the opening of judicial proceedings to demand payment. In addition, if the recognition is made public before a notary, it can be challenged directly against the debtor`s assets if the debtor does not comply with his payment obligation. Similarly, this document is adapted to include one or more guarantors (also called guarantees) to insure or guarantee the payment of the debt to the creditor. Non-payment by customers, delay in paying payroll to employees, non-repayment of a loan or non-payment of rent instalments are just some of the daily situations in which we face a situation of non-payment.

In such cases, the creditor (person or persons to whom a sum of money is due, either a natural person or a company) may apply to the court to demand payment from the debtor (person or persons, natural or legal persons, who must make the payment of an economic amount in favour of the creditor). If it is decided to use this route, the creditor must present the contract that gave rise to the debt or prove the existence of the debt, if the agreement was concluded orally. III. That in this act the DEBTOR expressly and clearly acknowledges that he owes the creditor the aforementioned amount, namely $_____ (____). Although the contract or document on the acknowledgement of debts is fully valid, binding and binding, if it appears in a private deed, it is possible to pass it to a public act. Such public recovery gives the creditor, in the event of default, the possibility of judicially recovering the recognised claim by means of an enforcement measure; That is, to execute them directly on the debtor`s assets. The signing of an IOU agreement implies confirmation of the existence of an unpaid amount, which brings a number of benefits for both the creditor and the debtor. As explained in the preceding paragraphs, the signing of an acknowledgement of debt contract requires debtors to expressly acknowledge that a certain amount in euros is due to the creditor. In this way, the creditor has reliable proof of the existence of this amount due, in case it is necessary to subsequently initiate legal proceedings to demand compliance with its payment. This means that the creditor would no longer be obliged to prove the existence of the debt before the judge (as would be the case if it were not signed in this agreement).

The debt is considered to exist unless the debtor demonstrates otherwise (i.e. there is a so-called reversal of the burden of proof). The IOU model allows one or more natural or legal persons (debtors) to recognize the existence of an already constituted debt. On the other hand, in the case of the debtor, the debtor can gain time to obtain the liquidity necessary for payment, thus avoiding the creditor to initiate the relevant legal proceedings. In addition, he may attempt to negotiate with the creditor a possible reduction in the amount due, as well as forms or facilities of payment that better meet his needs. Once the document is completed and uploaded, to show its effects, it must be signed by the debtor or persons acknowledging the existence of a pre-existing debt, or by whom or persons acting on their behalf. In cases where this document takes the form of a contract, it must also be signed by the creditors or their respective representatives. Once the document is drawn up, if it is drawn up only by the debtor, it must be signed by the debtor, and if the creditor is also involved in the document (if the acknowledgement of the debt is written in the form of an agreement), it must also be signed by the creditor. In all cases, the document must be signed in duplicate so that each of the parties keeps a copy (and if guarantors or guarantees are involved in its creation, each of them must receive a copy).