Payment

Arrangement between creditor and debtor that a debt is paid off in instalments.

The essence of an instalment arrangement is that the creditor agrees with the repayment of the debt over a period of time, thereby giving up his right to claim the debt all at once. The arrangement usually provides that once the debtor fails to comply with the arrangement, the creditor is again entitled to collect the entire claim. Even if this provision is missing from the arrangement, if the debtor fails to comply with the agreement, the creditor can dissolve it due to breach of contract, as a result of which the creditor also acquires this right (to claim the entire debt).