Agreement to Compromise Debt

Agreement to Compromise Debt

John Smith, referred to as CREDITOR and Jane Doe, referred to as DEBTOR, agree to compromise the indebtedness as between them. CREDITOR, hereby agrees to compromise the indebtedness due the CREDITOR on the following terms and conditions:

The CREDITOR and the DEBTOR agree that the present debt due is $2468.18 (two thousand four hundred sixty eight & 18/100 dollars). The parties agree that the CREDITOR shall accept the sum of $1000.00 (one thousand & no/100 dollars) 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 of the $1000, 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 March 15, 2005. If the DEBTOR fails to pay the compromised amount by March 15, 2005, 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.

Dated: _______________

Signature: ____________

John Smith

CREDITOR

Signature: ____________

Jane Doe

Debtor