Agreement to Compromise Debt

Agreement to Compromise Debt :

This letter should be typed in the official letter-head of the company.

The Company's Name

Door Number and Street's Name,
Area Name,
Postal Code : XXXXXX
Phone Number : 0000 - 123456789

TO :

The Receiver's Name,
Door Number and Street's Name,
Area Name,
Postal Code : XXXXXXX

Date :

Reference :

Dear _____________,

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 $ XXXXX.

2. The parties agree that the undersigned shall accept the sum of $ XXXXXX 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 _, 19_.

Creditor :

Company :

Yours Sincerely,

(The Sender's Signature)

The Sender's Name

Enc. :

Agreement to Compromise Debt