DIY Legal Forms

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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:

(Full description)

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:

(Payment agreement)

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 on [Date].

_________________________

Creditor

_________________________

Company

*** If Required By State Law ***

This Section for Notary:

Acknowledgment

State of _________

County of ________ [County]

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Signature ________
Notary

My commission expires: _____

(Seal)