Debt Settlement Agreement Letter

and hereby agree to compromise the debt amount under the terms and conditions that follow:

and , both the parties agree that the outstanding debt is $. Moreover, the parties consent that will accept a sum of $ and consider it as full payment. The acceptance of the payment will be treated as a complete discharge of all due bills and will not take any further step to collect on the alleged debt. The payment will be made once the agreement is complete and either in cashier’s check or money order.

This agreement will be valid until and be treated as null and void if the debtor fails to make the payment within the due date and the account status will immediately stand as due.

Upon successful payment of the compromised amount, agrees to erase any negative information that it might have placed on the debtor’s credit report. Moreover, agrees to never place any such information on the debtor’s credit report in future.

Both parties are obliged to abide by the rules and regulations of the agreement and it’ll stand to benefit the parties, their successors and assignees.

Dated: ______________
Signature: ______________
Legal representative of
Dated: ______________
Signature: ______________