---
title: "Instalment and forbearance deed (with acknowledgment of debt and consent judgment on default)"
url: "https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/instalment-and-forbearance-deed"
type: "precedent"
site: "AI Law Framework"
id: "a46-instalment-and-forbearance-deed"
area_id: "A46"
kind: "deed"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Instalment and forbearance deed (with acknowledgment of debt and consent judgment on default)

> An original deed recording a debtor's acknowledgment of a debt, an instalment plan, the creditor's forbearance while payments are made, default triggers and a consent judgment or order that can be filed on default,…

Canonical page: https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/instalment-and-forbearance-deed  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

An original deed recording a debtor's acknowledgment of a debt, an instalment plan, the creditor's forbearance while payments are made, default triggers and a consent judgment or order that can be filed on default, with optional guarantor terms.

## Key facts

- Kind: Deed. A deed that must be executed as a deed.
- Practice area: [Debt Recovery & Civil Enforcement](https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement.md)
- Jurisdictions: New South Wales, Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 6 authorities it cites, for New South Wales and Australia.

## When to use it

Use when a creditor client has agreed a payment plan with a business debtor, before or after proceedings start. For individual consumers, check consumer credit and hardship obligations first and keep terms simple. Do not use where the debtor is insolvent or a preference risk is significant without advice.

## How AI may be used

AI may produce a first draft from the lawyer-approved payment plan, default clause and release, and check the schedule arithmetic, but the lawyer decides the default mechanism, security, consumer law issues and execution.

**AI may:**

- Assemble the deed from the approved plan, default clause and release
- Check that instalments add up to the acknowledged amount plus any agreed interest
- Prepare the consent judgment from the proceeding details the lawyer supplies

**AI must not:**

- Must not add interest, fees or default charges that the client has not approved
- Must not decide whether consumer credit laws apply to the arrangement
- Must not alter the consent judgment amount or terms after the parties have agreed them

**The lawyer checks:**

- The acknowledged amount is correct and the debtor is the right entity
- The consent judgment is held in escrow and its filing trigger is clear
- Consumer credit, hardship and unfair contract terms risks have been considered
- Execution blocks suit each party, and any guarantor has had the chance to get independent advice

## Authorities

- [Limitation Act 1969 (NSW) s 54](https://legislation.nsw.gov.au/view/html/inforce/current/act-1969-031)
- [Civil Procedure Act 2005 (NSW) ss 100, 101, 107](https://legislation.nsw.gov.au/view/html/inforce/current/act-2005-028)
- [Uniform Civil Procedure Rules 2005 (NSW) approved Form 44 (consent judgment or order)](https://ucprforms.nsw.gov.au/)
- [Conveyancing Act 1919 (NSW) ss 38, 38A](https://legislation.nsw.gov.au/view/html/inforce/current/act-1919-006)
- [Corporations Act 2001 (Cth) s 127](https://www.legislation.gov.au/C2004A00818/latest)
- [National Consumer Credit Protection Act 2009 (Cth)](https://www.legislation.gov.au/C2009A00134/latest)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/instalment-and-forbearance-deed and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*