What is a composition and how does it work? Compositions are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated $($undisputed$)$ claims against the debtor at or after the due date, in full satisfaction of their claims. They are generally treated as enforceable, despite the fact that they are agreements to settle liquidated debts. Creditors usually enter compositions when they believe that failure to do so may result in the debtor$$s bankruptcy, in which case they might ultimately recover a smaller percentage of their claims than in the composition.