26/03/2026
Why you shouldn't always agree to sign Acknowledgment of Debt but agree on a payment plan.
A payment plan is a mutual agreement on how to settle a balance, whereas an Acknowledgement of Debt (AOD) is a powerful legal instrument that significantly changes your legal standing.
Under Botswana law, an Acknowledgement of Debt is considered a liquid document, this means the debt is no longer alleged but it is proven by your own signature.
If you miss a single payment under the Acknowledgment of Debt, the creditor does not need to go through a long trial to prove youb owe some money. They can apply for summary judgment, a quick court process where the court grants judgment against you almost immediately because you have already confessed to the debt in writing.
When signed one generally waives their right to dispute the original amount. If there were errors in the original invoices, overcharges, or if the services provided were incomplete, signing an AOD effectively cures those mistakes for the creditor. You cannot later argue in court that the original amount was wrong because the AOD acts as a new, independent contract.
An AOD often includes a consent to judgment or costs including legal fees. This means if you default, it is not only liable for the debt but you are contractually agreeing to pay the creditor's highest possible legal fees. It makes it much easier and cheaper for them to move toward a Writ of Ex*****on to seize company assets.