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Abatement of Litigation Agreement

The Abatement of Litigation Agreement is an agreement made by a debtor to pay a portion of a claim in return for the litigation being postponed for an agreed amount of time. If the parties were to agree to a one time payment and dismissal, this would not be necessary.

This is an approach taken when the debtor cannot pay the full amount immediately but agrees to pay something. The Plaintiff accepts this kind of agreement to get the money rolling towards them as opposed to more outflow in continued litigation.

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