What is a Deed of Debt Compromise ?
It is a formal written agreement between a lender and borrower for final settlement of the debt with a compromise. The compromise can be done on interest or principle payable. This details the amount of original borrowing and interest rate, the amount payable and the acceptance of the compromise on behalf of the lender and the final settlement amount.
Usage of Deed of Debt Compromise:
It can be used by a lender or borrower for the purpose of settling the final dues where some compromise on the interest or principle due has been intimated and mutually agreed upon.
Execution of Deed of Debt Compromise:
The Debt Compromise agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.10/- or more. It is made in two copies so that the lender and borrower each hold one copy of the original signed agreement for their own records.
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