This review list is intended to guide you about the subject of this document and to help you in its preparation. This is an agreement between the debtor and the creditor in which the debtor agrees to pay a portion of the claim against them in exchange for the litigation being postponed for an agreed period. This would not be necessary if the parties agreed to a one-time payment and dismissal. This is a strategy used when the debtor is unable to pay the full amount immediately but agrees to make a partial payment. The Plaintiff accepts this type of agreement to start the money flowing in their direction rather than continuing litigation.
- Make numerous copies. Maintain detailed records of all payments to ensure that evidence can be used if the matter is brought back to court due to the debtor’s failure to make the promised payments on the schedule conformed to in the document.
- In principle, if payments are readily available, the Plaintiff is frequently better off accepting delayed payments with additional interest than returning to court—after this document has been signed and some payouts by the debtor have been made.
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_____________________, referred to as PLAINTIFF, and _________________, referred to as DEBTOR, agree:
The parties are litigating a disputed matter in the __________________, case number
The parties agree that the DEBTOR is indebted to the PLAINTIFF in the amount of $______(_______________________________ & ______/100 dollars).
DEBTOR shall pay this sum under the following conditions:
The parties agree to abate the litigation under the following terms:
(a) the case shall not be dismissed for failure to prosecute during the term provided for payment;
(b) this agreement may be filed by either party if necessary to enforce this agreement;
(c) in the event that the DEBTOR fails to pay as is agreed, the PLAINTIFF shall be entitled to obtain a judgment for any remaining balance upon ex parte application, the DEBTOR specifically waiving notice of application for judgment and settlement of the form of judgment.
Either party may file this agreement before the Court.
This is the entire agreement between the parties and this agreement may only be amended by a writing executed by the parties hereto.
_____________________ By Debtor
_________________ By Plaintiff