Who it's for
- Friends and family lending small sums
- Anyone who wants a debt that arose verbally put in writing
- For instalments, interest or a guarantor, use a loan agreement instead
What's included
- About this template — when to use an IOU and when to use a loan agreement
- IOU v loan agreement quick guide
- IOU acknowledgement of debt: details table, debtor's acknowledgement, signature and witness
Save with a bundle: get this plus 9 more documents in the Debt and Consumer Bundle for £39.99.
See what's in the bundle →Key points covered
- A signed IOU is written evidence of the debt
- Claims on simple debts generally have a 6-year limitation period in England and Wales
- A written acknowledgement of the debt restarts the limitation period
- Use a full loan agreement for instalments, interest, a guarantor or larger sums
- Have a witness who is not the creditor
DocPilot templates are drafted from current legislation and official guidance (GOV.UK, legislation.gov.uk and the relevant regulators), checked against those sources and fully re-reviewed every six months. They are not legal advice. How we make our documents →
Read the guide
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Loan Agreement with Guarantor£12.99 · See what's included →Debt Repayment Agreement£9.99 · See what's included →Small Claims Court Guide£12.99 · See what's included →
Questions
Is an IOU legally binding?
It is written evidence that a debt exists and can be relied on in court.
When should I use a loan agreement instead?
For instalments, interest, a guarantor or larger sums — the template suggests over £1,000.
Does it need a witness?
It is recommended. The witness should not be the creditor.
Is it in the Debt and Consumer Bundle?
Yes. The IOU Acknowledgement Form is one of the 10 documents in the bundle.
IOU Acknowledgement Form
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