Download this form for an Agreement to compromise on a Debt in United States of America
Text Version of this Form
Agreement to Compromise Debt Form
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 ________________, 20_____.