In a loan between individuals, it is always preferable to keep a written record of the commitment made by the debtor to repay the amount of money he owes to his creditor.


What is debt recognition?

What is debt

An acknowledgment of debt is a written document by which one person, the debtor, agrees to pay a sum of money to another, the creditor. In a credit between individuals, it is a guarantee for the creditor to be reimbursed and serves in particular to guard against possible insolvency of the borrower.


Why establish a debt recognition?


It should be known that the establishment of an acknowledgment of debt is optional for a small credit of less than 760 €. Nevertheless, keeping a written record of the loan agreement is always recommended, regardless of the amount you lend, in order to protect yourself from possible insolvency of the debtor, and especially to avoid the possibility of the death of the latter.

An acknowledgment of debt is a written proof of the existence of a debt, in fact without this letter, the debtor, if he is in bad faith, may deny the fact that he owes money to the creditor. If the loan amount exceeds 760 €, then the law requires the establishment of an acknowledgment of debt signed by the debtor and the creditor.


How to write a debt recognition?


The debt acknowledgment must be handwritten in two copies. It may be established in the form of an authentic deed by a notary or by private deed. It is easy to write a debt acknowledgment, however, to be admissible as evidence in the courts, the following must be mentioned:

  • the date and the signature of the debtor,
  • the surname, first name and date of birth of the debtor, as well as the creditor,
  • the total amount of money lent, indicated in figures and in words
  • indication of the date on which payment of the debt will be due,
  • indication of the interest rate if it exists

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