Request to write off a debt - letter (2024)

FAQs

How to ask for debt to be written off? ›

I am therefore asking you to consider writing off my debt as I can see no way of ever repaying it. If you are unable to agree to this, please explain your reasons. Thank you for your help and I look forward to hearing from you.

I am/We are writing to you because I am/we are in financial difficulties. My/our financial statement is enclosed. Briefly explain the reasons for your financial difficulties and why you do not expect them to improve sufficiently for you to make payments to credit (non-priority) debts in the future.

I am responding to your contact about a debt you are attempting to collect. You contacted me by [phone/mail], on [date]. You identified the debt as [any information they gave you about the debt]. Please stop all communication with me and with this address about this debt.

How to deduct bad-debt loss. Generally, you can't take a deduction for a bad debt from your regular income, at least not right away. It's a short-term capital loss, so you must first deduct it from any short-term capital gains you have before deducting it from long-term capital gains.

Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. You should also include all the key information your creditor will need to locate your account on their system, which includes: Your full name used on the account. Your full address.

The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.

You can ask the people you owe to write of your debts if this sounds like you. Some creditors may agree if: They understand you will not be able to pay. They see you have no assets to sell.

Send a 'drop dead' letter

You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.

Don't provide personal or sensitive financial information

Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.

Debt Validation Letter Example

I am requesting that you provide verification of this debt. Please send the following information: The name and address of the original creditor, the account number, and the amount owed. Verification that there is a valid basis for claiming I am required to pay the current amount owed.

Do debt validation letters really work? ›

Do Debt Validation Letters really work? Yes, they do. When a debt collector receives a Debt Validation Letter, they are legally required to provide validation of the debt. Debt Validation Letter's work best when they include a cease and desist clause that forces a lawsuit.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

I am writing this letter to bring to your notice the following information added to my credit report. The [dispute item] along with the [creditor's name] are falsely added to my credit report without my prior knowledge. The mentioned details are incorrect and I request you to revise the report after due diligence.

The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.

You can ask the people you owe to write of your debts if this sounds like you. Some creditors may agree if: They understand you will not be able to pay. They see you have no assets to sell.

This is called a composition order. You can ask the judge for a composition order or the judge may decide to give you one after looking at your financial circ*mstances. You can usually only get one if you won't be able to pay all your debt off in a reasonable time.

The debt will likely fall off of your credit report after seven years. In some states, the statute of limitations could last longer, so make a note of the start date as soon as you can.