Request to write off a debt - letter - Citizens Advice.
If you are unable to pay your debts, you should contact your creditor to let them know and see if they are willing to write off the debt. This template is to be used for guidance and may not suit your specific situation. If you require more detailed advice and guidance, you can get more help.
Write off debt 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. You need to convince the creditors that your circumstances are unlikely to improve in the future. Your circumstances may need to be exceptional; for example, you have a severe illness.
If you have a lump sum that would cover part of your debts, you could ask your creditors whether they would accept a part payment and allow you to write the rest off. Alternatively, they might allow you to make monthly payments for an agreed period after which the balance is written off.
The promise of a scheme that can write off 75-90% of your debt is not to be taken lightly. An IVA is a serious financial arrangement and is only suitable for a small number of people. If you are in debt crisis, read our Debt Solutions guide to find out if it could be the right thing for you.
Free, online debt advice available now. Some organisations claim to be able to write off your credit card debt for you. Be careful - these claims are misleading and could cost you even more money. Beware of any firms claiming to be able to write off your credit card debt by using a legal loophole, and be particularly wary of anyone asking for.
Sample letter Write off the debt (sole name) Use this letter when asking your creditor if they would consider writing off your debt. You can find information about how to use this letter in our fact sheet Review your offers to creditors. Letter in joint names. You can choose to send a letter in your own name or in joint names.
A bad debt write-off adds to the Balance sheet account, Allowance for doubtful accounts. And this, in turn, is subtracted from the Balance sheet Current assets category Accounts receivable. The result appears as Net Accounts receivable. The write off, in other words, means that Net Accounts receivable is less than Accounts receivable.
Applying for a write-off in such circumstances might put your property at risk of being sold eventually to pay for the debt. More commonly, they might try to get an inhibition on the property. If they do, they might be able to get their money back if the property is sold. Contact us for advice.
How to Write Off Debt. When credit card companies write off debt, they report uncollected monies to the IRS as lost income. Most credit card companies turn over delinquent accounts to collection agencies after 6 months of non-payment. Writing off your debt by not making regular payments should be considered a last.
Getting a debt written off is unusual. This should probably not be the first thing you think of if you have problems paying your bills and debts. But there are some situations where a write off should be considered by the creditor, so this article looks at these “good cases”.
When the creditors write off debt, they mean that they are considering only one or a part of the debt cleared off. The creditor looks into matters like whether you are permanently unable to work, have an extreme illness, or lost the job.
If your debts are owed jointly with another person, the creditor might agree to write off your liability for the debt but still pursue the other person for the whole amount. To avoid this, try to get a write-off agreement that includes all the parties to the agreement.
Sample letters to creditors If you've got debts you can use our sample letter generator to write to your creditors. You can use the letter templates to tell your non-priority creditors about your situation and to ask them to accept your repayment plan.
