Agreement to Compromise Debt

_____________________________ (hereafter “Creditor”) and ________________________ (hereafter “Debtor”) hereby agree to the following:
That the Debtor owes the creditor a sum of {total sum}, including {charges} and {late fees}.
That both parties are amenable to a compromise of the debt and terminating the late notice and pursuit of payment collection.
Therefore, the Creditor and Debtor agree that the Debtor shall pay the Creditor the lesser amount of {lesser amount} {in installments of X amount/in one lump sum}.
Upon receiving payment of {lesser amount}, the Creditor agrees to consider all of the Debtor’s debts, claims, and liens fully paid; to terminate the Debtor’s late notice from the system; and to withdraw all employees, associates, and accompanying creditors from pursuit of payment.
The Debtor may pay in {payment types}. The Debtor must pay {the full amount/the first installment} to the Creditor no later than {date}. If the Debtor does not pay by {date}, this agreement will be deemed null and void, and the Debtor will be required to pay the full amount, due immediately.
In witness to their agreement to the terms of this contract, the parties affix their signatures below:
Creditor, signature & date
Debtor, signature & date