Banking Category Banking: the easy, simple banking guide

Debt acknowledgement agreement

A debt acknowledgement agreement is an agreement by someone that they indeed owe a debt.

It can include a confirmation of the amount and a promise to pay the debt. A debt acknowledgement agreement can be separate from the loan documentation or promissory note.


Debt acknowledgement agreements are a standard requirement for real estate mortgages. Signing a debt acknowledgement agreement is considered proof that someone knowingly and willingly entered a mortgage. A bill of exchange is a form of debt acknowledgement. The goods are exchanged for a promise to pay for the goods later. An IOU is a debt acknowledgement agreement; it confirms that a debt is owed to a specific person.


A signed debt acknowledgement agreement can be used as proof that a debt is owed. However, it cannot be collected by a court unless the debt acknowledgement agreement states the specific amount owed, the interest rate and when the debt must be paid.

Statute of Limitations

Different types of debt agreements have varying statute of limitations.

The statute of limitations also depends on the jurisdiction where the agreement was signed. Signing a debt acknowledgement agreement for an expired debt restarts the statue of limitations.