.
Agreement To Compromise Debt is also known as a debt settlement agreement, Debt negotiation settlement, or credit settlement. This agreement usually captures negotiated or settle claim details on an already existing loan. The lender and borrower sign this agreement where the lender agrees to forgo some borrowed money under certain situations. A debtor is unable to pay back the money due and, therefore, a middle way of settlement is reached. The lender is the giver, and the borrower the person who borrows money. The lender and borrower often negotiate and try to settle the claim instead of getting into legalities amicably.
The Contract to Compromise Debt addresses clauses like:
1. Original loan amount
2. Agreed sum that the creditor forgoes
3. Payment schedule
4. Right of the creditor to claim legal expenses in case of default
5. Right of the debtor to claim legal expenses in case of default
6. Governing laws
7. Rules governing failure to pay
If you need a Compromise Debt agreement use this document. You may also find other compensation and benefits related document templates to use here:
Source: https://www.smartbusinessbox.com/agreement-to-compromise-debt/