Letter for Agreement to Compromise Debt
Dear Mr/Mrs. XYZ,
Regarding Value Receive, the undersigned being a new creditor of _ (Company name…) hereby penetrates into an agreement to compromise and reduce the indebtedness due the undersigned on the following terms and conditions:
The Company and the undersigned acknowledge that the present debt due is tk (amount…).
The parties agree that the undersigned shall accept the sum tk (amount…) as full as well as total payment on explained debt and in complete discharge of monies presently due, provided the sum herein will be punctually paid in the manner following:
In this event the Company fails to punctually pay the reduced amount, the undersigned creditor will have full rights to be able to prosecute it claim for that total debt due beneath paragraph one and two (less obligations made).
This agreement should be binding upon and inure to the advantages of the parties, their successors, assigns along with personal representatives.
Signed under seal date of (day… month….year).