Agreement to Compromise Debt

If someone owes you money and you're willing to accept payment of a reduced amount in order to settle the debt, draw up an Agreement to Compromise Debt to set the terms.

• The creditor agrees to accept the reduced sum as payment in full, provided that the total amount is paid within a specified time.
• If the debtor fails to make the payments on time, the creditor has the right to start legal proceedings against the debtor for the full amount of the debt.

This Agreement to Compromise Debt template is available as a downloadable and fully editable MS Word file.