Agreement to Compromise Debt

If a customer owes you money and you're willing to accept payment of a reduced amount in order to settle the debt, draw up an Agreement to Compromise Debt to set the terms.

• The creditor agrees to accept the reduced sum as payment in full, provided that the total amount is paid within a specified time.
• If the debtor fails to make the payments on time, the creditor has the right to start legal proceedings against the debtor for the full amount of the debt.
• This is a generic legal form which can be used almost anywhere.

Sometimes it makes sense to settle for less, just to clear the slate. That's what this Agreement to Compromise Debt is for. Download it, fill it in and print it off.