Agreement to compromise debt is an arrangement entered into between lender and borrower to lesser a debt amount and both parties agree to follow with the lesser amount and the payment terms set forth again. In simple words, it is a legal agreement that allows you to compromise the repayment of a debt that borrower cannot pay due to financial crises or other reasons. According to the terms and conditions mentioned in an agreement to compromise debt, a lender agrees to accept short amount from the borrower other than the full amount of the loan in order to settle the debt. A debt collector may agree in an agreement to compromise debt to let you pay less than the total amount you owe on a debt. It may include information like agreed compromised sum and repayment schedule for the debt or loan, right of creditor in details to claim the full sum in the event of default, details of creditor’s rights to claim legal expenses in the event of default nature of the agreement and other conditions etc.
As a lender if you are failed to collect repayment of loan or debt from borrower, in this case writing of an agreement to compromise debt is a best plan to come over the problem. In this agreement a debtor will agree to pay off specific sum of money other than full amount of loan. A carefully prepared agreement to compromise debt can help you get back some of your losses so it will be a best option for you to settle a debt with borrower. Putting new terms and conditions about the debt in writing by means of agreement to compromise debt provides you a legal way to get debt or loan partially repaid so you can go for other things in your life. Agreement to compromise debt it usually prepared when a debtor unable to repay a loan or debt. As a lender, instead of wasting time and money chasing down a debtor, you should prepare an agreement as to how much the debtor can pay you the amount.
Here is preview of Sample Agreement to Compromise Debt created using MS Word,
Theoretically you can have an oral agreement to compromise debt but nobody does this and it definitely not legally recommended. Such agreements must be in writing so you can present it as a written evidence of debt settlement. In result of the agreement to compromise debt, if the debtor fails again to make timely payment as agreed in the agreement, then the total and actual amount of the debt or loan becomes due and a lender can also take a legal action against borrower to get the money back in full. Internet is full with wide range of sample and templates that one can utilize to write an agreement to compromise debt if there is lack of knowledge and information about how to create it accurately. Legal representatives and lawyers also provide their services to prepare such agreements but they may ask you to pay service charges in return. It is best for you to download an appropriate sample agreement to compromise a debt from web to get assistance in this regard.
Here is download link for above shown Sample Agreement to Compromise Debt,
Related Word Templates
Loan Agreement Template You may heard about loan agreements before, a loan is an agreement of borrowing money from the lender and then repay him after a specified time. The loan agreement may be in writing or in oral, the writing loan agreement is fully legal and it binds the borrower in the terms and conditions of loans. Loan agreements may be for persons, companies or group of companies and can have […]
Sample Agreement of Purchase and Sale of Business Assets Businessman can play at the different levels of entrepreneurial conduct by widening or narrowing their business. It is very common that one business’ assets move out the front gate every day via sales and drive back the next day in the form of a purchase. Simply it is the sale of one business to another.With the sale or purchase of business asset, there is a date on a day assigned on […]
Professional Services Agreement Template When a company involves another company or services provider for professional services, the services agreement is signed by both parties i.e. company and service provider. This agreement benefits both the company and the service provider with their rights and responsibilities so that no one violates any terms and mutually agreed clauses in the agreement. Small companies prepare this […]
Mediation Agreement Template Mediation is basically a way usually used to settle disputes or quarrels between two or more than two parties. However, a mediation agreement is a legal document containing typically a brief summary of important issues that the involved parties have agreed on and other important details like how they have decided to move forward to clear up a quarrel or dispute. A medication agreement […]
MOU Memo Template The document which is known as memorandum of understanding is an important legal document that is signed between the two parties which are entering into a common interest thus getting mutually agreed upon the common upcoming interests. This document actually shows that both the parties are happy to join in the common line of action for their future perspectives. This is generally taken […]
Non-Disclosure Agreement Template In business life a person might be in a situation to share surreptitious matters with other parties or persons which demand to be kept confidential. A non disclosure agreement is constructed at this point for the sake of secrecy. Non disclosure agreement is a legal document in which one party consents to provide confidential information about their business or products to other party […]
Co-Branding Agreement Template Before jumping on the description of this type of agreement, one should have a know-how of this term as well. Co-branding as the name suggests, is a procedure whereby more than one brand collaborate their marketing efforts to promote both brands consecutively. Co-branding has gained huge steam in the business arena owing to its usefulness. It is one of the marketing tools that are […]
Assignment of Contributor Rights Agreement Template The contributor rights assignment agreement takes place between the person who contributes any material and the one who is the owner of the project in which material is being contributed by the contributor. As this is the assignment agreement, all rights relating to the contribution are transferred to the other party. Had it been a license, the contributor will transfer the rights […]
Affiliate Program Agreement Template An agreement is signed between two parties that are interested in forming a relationship. The relationship can with either be short term or long term. Short term can be less than a year and long term usually is more than a year. Such distinction is necessary before drafting an agreement because such ambiguities can result in stringent consequences for both of the parties involved. […]
General Power of Attorney Agreement Template General power of attorney can be described as a written authorization from someone to represent or act on his or her behalf in variety of different affairs. Basically it is a legal document that authorize and appoints another person usually called an attorney, to deal with your different business affairs as well as to make financial and legal decisions for you. Attorney itself means an […]