Below is the  Agreement To Compromise Debttemplate body. If necessary, please put the personal information, company information, such as text to replace the specific content you need. you can download the .doc template file on the end of the article by click download link. 

AGREEMENT TO COMPROMISE DEBT



This Agreement to Compromise Debt (the "Agreement") is made and effective the [DATE],


BETWEEN:  [YOUR COMPANY NAME] (the "Company"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

  [YOUR COMPLETE ADDRESS]


AND:  [CREDITOR NAME] (the "Creditor"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

  [COMPLETE ADDRESS]


In consideration of the terms and covenants of this agreement, and other valuable consideration, the parties agree as follows:

FOR VALUE RECEIVED, the Creditor being a creditor of the Company hereby enters into an agreement to compromise and reduce the indebtedness due the undersigned on the following terms and conditions: 

The Company and the Creditor acknowledge that the present debt due is [AMOUNT].

The parties agree that the undersigned shall accept the sum of [AMOUNT] 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:

[DESCRIBE PAYMENT TERMS]


In the event the Company fails to punctually pay the reduced amount, the creditor shall have full rights to prosecute its claim for the total debt due under paragraph 1 (less payments made).

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] day of [MONTH] month, [YEAR].



            
Creditor



            
Company

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