Agreement to Compromise Debt

This Agreement to Compromise Debt is between a creditor and a debtor who agrees to compromise a debt under specific terms and conditions. This agreement sets out the current amount of the outstanding debt and the sum the creditor agrees to take as full repayment of this debt. It also sets forth that no further collection action will be taken and that this agreement will terminate if the debtor fails to pay the settlement amount by a specific due date. It is imperative that this agreement be memorialized in writing and not via oral agreement. A written Agreement to Compromise Debt will prove invaluable in the event there are disagreements or misunderstandings about the terms of this arrangement. (continued ...)