What Is a Debt Forgiveness Letter?
A Debt Forgiveness Letter is a formal document that informs the recipient they no longer have to pay the sum of money owed to the letter writer.
- Forgiveness of Debt Letter.
Whether you represent a financial institution that decided to make life easier for their client, you want to relieve a debtor of their financial liability due to extenuating circumstances, or you are prepared to meet the other parent of your child halfway and forgive their debt, use the appropriate template to notify the other party they do not owe you any money anymore.
Debt Forgiveness Letter Types
While each Forgiveness of Debt Letter is unique and the person or entity that drafts it is encouraged to customize it to add a personal touch and include whatever details you consider necessary. However, at a minimum, your message must identify you or the company you represent, greet the individual whose debt you are prepared to forgive or settle, confirm your preparedness to cancel their financial obligations, indicate the amount of money the recipient of the letter has paid you already and the amount of money you are ready to forgive.
- Generic Debt Forgiveness Letter. You can fill out this template if you have decided to cancel the outstanding debt of another individual or entity.
- Sample Debt Forgiveness Letter. This short statement can be utilized as a reference in case you have considered the financial status of the debtor and have determined they are unable to pay you back.
- Sample Child Support Debt Forgiveness Letter. Common in family disputes, this statement lets the mother or the father of the child waive their right to receive payments from the other parent.
- Sample Request for Debt Settlement Letter. Complete this document if you have experienced hardships and cannot pay your creditor back - they may offer you a different rate or accept a lump-sum payment to cover your debts.
- Sample Credit Card Debt Settlement Letter. Send your credit card company a message with the request to change your interest rate or lower the total amount of money you owe them.
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This type of letter is useful if you are in a situation where you will not be able to repay the full amount due for a credit card or bank loan and would like to ask for the debt to be forgiven.
This letter informs the recipient that they no longer have to pay the money owed to their creditor.