AGREEMENT
TO COMPROMISE DEBT
FOR VALUE RECEIVED,
the undersigned [s-Name] (Creditor) of [s-Address] (address), city of
[s-City], state of [s-State] and [r-Name] (Debtor) of [r-Address]
(address), city of [r-City], state of [r-State] enter into agreement
to compromise and reduce the indebtedness due from Debtor on the
following terms and conditions:
- Debtor and Creditor acknowledge that the present debt due is in the amount of [r-DebtAmount].
- The parties agree that Creditor shall accept the sum of [r-AgreedDebtAmount] as full and total payment of said debt and in complete discharge, release, satisfaction and settlement of all monies presently due, provided the sum herein shall be fully and punctually paid in the manner following:
[Insert Payment Settlement Information]
- In the event Debtor defaults on the terms of payment, Creditor shall have full rights to prosecute its claim for the full debt amount of [r-DebtAmount] less credits and payments made.
- This agreement shall be governed by the laws of the State of [t-State] and 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___.
____________________________ _____________________________
Witness
Creditor
[s-WitnessName] [s-Name]
____________________________ _____________________________
Witness Debtor
[s-WitnessName] [r-Name]
