Agreement to Compromise Debt

Start of the Free Letter Sample / Free Form Sample

AGREEMENT TO COMPROMISE DEBT

FOR VALUE RECEIVED, the undersigned being a creditor of _ [Company] hereby enters into an agreement to compromise and reduce the indebtedness due the undersigned on the following terms and conditions:

The Company and the undersigned acknowledge that the present debt due is $_.

The parties agree that the undersigned shall accept the sum of $_ as full and total payment on said debt and in complete discharge of all monies presently due, provided the sum herein shall be punctually paid in the manner following:

In the event the Company fails to punctually pay the reduced amount, the undersigned creditor shall have full rights to prosecute it claim for the total debt due under paragraph 1 [less payments made].

This agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal representatives. Signed under seal this _ day of _, 20_.

_______________________________
Creditor

______________________________
Company