Debt Compromise Agreement Template​

Typically, this agreement is employed to avoid prolonged legal proceedings or to ensure some repayment when the debtor is struggling financially. It serves to protect the interests of both parties by offering the debtor a more manageable payment plan while ensuring the creditor receives some or all of the owed funds.

The agreement may include clauses about the debt's timeline, reduced payment amounts, or suspensions of accruing interest. It is crucial that the terms are clear and mutually agreeable to prevent any future disputes or misunderstandings.