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Write Off the Debt (Second Request) Sample Letter Template

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Scott
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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Mar 14th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
Write Off the Debt (Second Request)

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you seeking help to write a ‘request to write off debt’ letter? This is the right place for you. Each month, over 170,000 people visit our website for guidance on debt solutions. 

You may feel concerned about your debt. Don’t worry; we’re here to help you write a formal letter to solve your problem.

In this article, we’ll share:

  •  A sample letter to request your creditor to write off your debt.
  •  Steps on how to write off debt legally.
  •  Answers to questions like, ‘Can debt be written off?’ and ‘Do creditors have to write debt off?’.
  •  What to do if your request is refused.
  •  Other ways to write off a debt.

We know you’re in a tough spot, so we have also included a downloadable resource for your use. Let’s dive in!

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Letter Template

To Whom It May Concern

Regarding Case #: [your case number]* (required)

Thank you for your [letter/telephone call]* (required) concerning the above account. I am sorry that you are unable to write off the outstanding debt.

The majority of my creditors have agreed to write off the debts I owe. They have accepted that my circumstances mean that I cannot realistically maintain payments of any kind.

I would therefore be grateful if you would reconsider writing off this debt. Please take the following information into account when making your decision.

[include a paragraph outlining the special circumstances you have that you want the creditor to take into account]* (required)

I would therefore be grateful if you would reconsider writing off this debt. If you do not agree to this request, please consider accepting token payments on this account of £1 per month. As you will see from the enclosed budget summary I have no available income and I am not in a position to make realistic offers of payment. 

Also, please freeze any interest and charges on the account to avoid the situation getting worse.

I look forward to hearing from you.

Yours sincerely


Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

Can debt be written off?

Debts can be written off by creditors, but it is not easy to get them to agree to wipe the debt. After all, commercial businesses and lenders require you to pay back the debt so they can make a profit. 

You will need to make the creditor realise they do not stand a good chance of recovering the debt because of your financial situation or possibly because of a terminal illness. By making them realise that chasing the debt is a worthless cause, they might agree to write off the debt.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Do creditors have to write debt off?

Creditors do not have to agree to write off a debt irrespective of the circumstances. Even if you are in financial hardship, there is unfortunately no law that states they have to wipe the debt. 

However, The Lending Standards Board and similar organisations strongly urge creditors to stop chasing debts and write them off when the debtor is not going to be able to pay them back now or in the future.

What if your request is refused?

If the creditor refuses to write off your debt, you can acknowledge their decision but make a second request. This is why we have created a letter template for second requests to write off the debt. 

The second letter should stress the points you made in the first request. You may want to include further information or proof. And it can be beneficial to show evidence of other creditors wiping your debt, if this has happened. 

» TAKE ACTION NOW: Fill out the short debt form

Other ways to write off a debt

If the creditor rejects your second attempt to get the debt written off. You should start to look into the different debt solutions options. One particular solution can write off your debt in time, namely a Debt Relief Order

This is a solution for people with less than £75 spare each month and no assets worth more than £2,000. The Debt Relief Order will ban all creditors from chasing you for money for a whole year. And at the end of the year, if your finances have not improved, all the debt you owe will be written off. 

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.