Sample Debt Letter 3
Request a Reduced Settlement
Date
Name of contact, Name of company
Address
City, ST Zip
Re: Account of [name account is under]; Account No. [insert account number]
Dear _________:
This letter is to follow-up on the telephone conversation we had on [date] wherein I advised you of my dire financial condition. As I told you on the phone, I have recently become disabled, and my current monthly income has been reduced to such a low amount that it barely covers my rent and basic necessities of life. Because my health problems are permanent and I have nothing of value to sell and no money in savings, there is no way I will be able to pay my debts in full. For this reason, I am trying to avoid filing bankruptcy by contacting all of my unsecured creditors and asking them to accept a reduced amount as payment in full.
My monthly net income in the form of a disability payment is $_____________ , and my basic living expenses are as follows:
RentInsuranceUtilitiesFoodTotal $_____________________As you can see, this leaves me $__________ each month to pay all of my unsecured creditors, who consist of the following:
Creditor Total Amount Due Average Monthly PaymentX Credit Card$[total amount due]$[avg. monthly payment]Y Credit Card$[total amount due]$[avg. monthly payment]Z Credit Card$[total amount due]$[avg. monthly payment]Totals $___________$____________I am proposing a settlement of 30 percent of the total amount owed as payment in full for this debt to your company, as well as the other two listed above. Thirty percent of $[total amount due] is $____________, which I am requesting be paid back to you in the form of a payment each month in the amount of $____________ for the next [number of months] months.
Please contact me as soon as possible and advise me whether or not this settlement is agreeable to you. I want to do everything I can to avoid filing bankruptcy and am hoping I can work out some sort of settlement with my creditors. Thank you for your attention to this matter.
Sincerely,
Your name
Complete contact information
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