Proposal by Creditor to Enter into Composition Agreement

• Category: Contracts - Composition with Creditors
• State: Multi-State
• Control #: US-0931BG
• Format: Word; Rich Text

Description

A composition agreement is an agreement made between an embarrassed or insolvent debtor and two or more of his creditors that each of the creditors entering into the agreement will be paid a specified amount, less than the whole of their claims, and the creditors agree to accept such payment in full satisfaction of their claims. The agreement works substantially an accord for which the consideration is the satisfaction to be made by the debtor, and such an accord is no bar to suit on the original debt, unless the satisfaction is performed. A Proposal by Creditor to Enter into Composition Agreement is a document that a creditor proposes to a debtor to enter into an agreement that will reduce the amount of money the debtor owes. This type of agreement is typically used to settle an outstanding debt, and the terms of the agreement are negotiated between the creditor and the debtor. The agreement usually involves the debtor making a lump sum payment or a series of payments to the creditor in exchange for a reduction in the amount owed. The two main types of Proposal by Creditor to Enter into Composition Agreement are: 1. Voluntary Proposal: This type of proposal is initiated by the debtor and involves the creditor agreeing to accept a reduced amount of the debt. The debtor typically offers a lump sum payment or a series of payments to the creditor in exchange for a reduction of the debt. 2. Compulsory Proposal: This type of proposal is initiated by the creditor and involves the debtor agreeing to accept a reduced amount of the debt. The creditor typically offers a lump sum payment or a series of payments to the debtor in exchange for a reduction of the debt.

A Proposal by Creditor to Enter into Composition Agreement is a document that a creditor proposes to a debtor to enter into an agreement that will reduce the amount of money the debtor owes. This type of agreement is typically used to settle an outstanding debt, and the terms of the agreement are negotiated between the creditor and the debtor. The agreement usually involves the debtor making a lump sum payment or a series of payments to the creditor in exchange for a reduction in the amount owed. The two main types of Proposal by Creditor to Enter into Composition Agreement are: 1. Voluntary Proposal: This type of proposal is initiated by the debtor and involves the creditor agreeing to accept a reduced amount of the debt. The debtor typically offers a lump sum payment or a series of payments to the creditor in exchange for a reduction of the debt. 2. Compulsory Proposal: This type of proposal is initiated by the creditor and involves the debtor agreeing to accept a reduced amount of the debt. The creditor typically offers a lump sum payment or a series of payments to the debtor in exchange for a reduction of the debt.