The Payment Plan Letter to Debtor is a crucial document used in Nigerian business and financial transactions when a debtor requires a structured approach to settling outstanding obligations. This document becomes necessary when the original payment terms need modification to accommodate the debtor's financial circumstances while protecting the creditor's interests. It combines elements of debt acknowledgment and payment restructuring, governed by Nigerian contract law and debt recovery regulations. The letter serves multiple purposes: it confirms the debt's existence, documents the agreed payment terms, provides a clear schedule for installments, and establishes the consequences of non-compliance. Common scenarios for its use include business-to-business debt restructuring, consumer debt management, and supplier payment arrangements. The document must comply with Nigerian federal and state laws regarding debt collection, interest rates, and consumer protection.

1. Letterhead and Date: Company/individual creditor's details, address, and current date

2. Debtor's Information: Full name and address of the debtor

3. Reference Line: Subject line identifying the purpose of the letter and any relevant account numbers

4. Debt Acknowledgment: Clear statement of the original debt amount, date incurred, and current balance

5. Payment Plan Terms: Detailed breakdown of the agreed payment schedule, including payment amounts, frequency, and start date

6. Payment Methods: Acceptable payment methods and account details for making payments

7. Duration of Plan: Total duration of the payment plan and expected completion date

8. Confirmation Request: Request for the debtor's signature to confirm acceptance of the payment plan

9. Contact Information: Creditor's contact details for any queries or concerns