Here is a sample template you can you to write a debt cancellation agreement letter.
To [name],
This is to notify the compromise of debt according to the terms and conditions set out in the attached agreement. The debt cancellation between [lender] and [borrower] has been made in terms of the payment conditions listed out in the attached agreement.
The outstanding debt amount was cleared on [date] The [creditor] declares of not making additional debt with the [borrower]. The cancellation took place in mutual interest and all outstanding payments have been cleared with respect to the debt cancellation plan.
Feel free to reach out in case of any questions or concerns
Sincerely,
[company/individual]
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