Letter for Agreement to Compromise Debt Sample, Template The purpose of an agreement to compromise debt is to have a contract signed between the debtor and creditor for re-negotiating or compromising on debt. This situation arises when a person is unable to make any final payment for the debt that he or she owns. The letter for agreement to compromise debt is a draft which contains all important information in relation with the due debt amount and the new arrangement that has been agreed upon. Shared below is the sample letter for agreement to compromise debt. You can use the agreement to compromise debt template to create a customized draft.
Sample Letter for Agreement to Compromise Debt From: Adam Smith Manager ABC Finances New York Date: January 11, 2022 To, Henry Gibbs Manager Zenith Technologies New York Dear Mr. Henry, We are writing this letter to compromise the indebtedness due on the terms and conditions shared below: • •
The company and the undersigned acknowledge that the value of the present debt is $ 5424. The parties agree that the undersigned will accept the sum of $ 2400 as fun and complete payment on the debt and in complete discharge of the money that is presently due, if the sum mentioned above is paid punctually in the manner shared here: 1. The sum will be paid in three installments of $800 each. 2. Each installment will be paid on the 10th of every month from February 2022 onwards. • In case the company fails to pay the reduced sum punctually then the undersigned creditor will have complete rights for prosecuting the claim for the total debt dues. • This agreement shall be binding upon to the advantages of the parties and their successors along with their representatives.