Home » Agreement

Agreement to Compromise Debt

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:

1. The Company and the undersigned acknowledge that the

present debt due is $_.

2. 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:

_

3. 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].

4. 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 _, 19_.

_______________________________

Creditor

_______________________________

Company

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.