Agreement to Compromise Debt

(Creditor's name/company), referred to as CREDITOR and (Debtor's name/company), referred to as DEBTOR, do hereby compromise and discharge the indebtedness of DEBTOR in the ammount of $[ammount] under the following terms and conditions:

The CREDITOR and the DEBTOR acknowledge that the present debt due and owed the CREDITOR is $[ammount] (ammount described in words). The parties agree that the CREDITOR will accept the sum of $[agreed upon ammount] (ammount in words) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due. The payment shall be made in cash.

In addition, upon accepting the $[agreed upon ammount] , the CREDITOR will notify all Credit Reporting Agencies that account is PAID AS AGREED, and delete any entries showing this account as ever being late.

This compromise is expressly conditioned upon the payment being received by [month day, year]. If the DEBTOR fails to pay the compromised amount by [month day, year], the original amount owed by the DEBTOR will be reinstated in full, and immediately due.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

Date: _______________

Signature: ____________

(Creditor's name/company)

CREDITOR

Signature: ____________

(Debtor's name/company)

Debtor