How to write a letter to write off debt

Industry guidelines and codes of practice say creditors should consider writing off your debt if you are: Very unwell, Unlikely to recover in the near future, and Have no way of repaying the debt.

Debt cancellation letter

It allows you to make a fresh start. It was designed to make it easier to collect this information for you and your creditors. I would be grateful if you would seriously consider my request to write off the debt. About us. Sample letter Write off request sample letter Use this letter to ask your creditors to write a debt off Here is a sample letter you can use to ask for a write off. It may take less time and effort to use another option such as bankruptcy or a debt relief order. You should also send your budget sheet that shows you cannot afford to pay your debts. Sign each letter and enclose a copy of your budget if needed. Yours faithfully. Once the form is completed, it can be photocopied and sent to all your creditors. It may be possible to ask your creditors to write off the debts if you have no available income to make any payments and have no savings or assets. This information should include: How long you have been unwell, What your mental health was like when you took out the agreement, Recent changes of circumstances that have affected your ability to repay for example, having less money coming in, working fewer hours or leaving your job, becoming unwell recently , How your debts affect your mental health, and Details of any recent hospital stays.

We have a sample letter that you can use to ask your creditors to write off your debts. If they do not agree at first, we have a further sample letter that you can use to ask them to reconsider their decision.

letter to creditors to settle debt

I would be very grateful if you would consider writing off the outstanding debt owing. Disadvantages If you have property with equity or similar assets, the creditor may take court action instead of agreeing to write of the debts.

debt letter template

This could make it more difficult for you to get credit in the future. Sign each letter and enclose a copy of your budget if needed. Creditors will want to see evidence of this usually in the form of a budget sheet and medical evidence of any mental illnesses.

Yours faithfully.

sample request letter write off assets

I have always taken my financial responsibilities very seriously but unfortunately, my circumstances are so bad that I cannot realistically maintain payments of any kind. Letter 3 - Request a wirte off of the full debt Letter 3 - Request the write off of a debt Template letter Request the write off of a debt due to ill health or personal circumstances.

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Writing off debts : Mental Health & Money Advice