Sample "Request for Debt Settlement Letter"

A Request for Debt Settlement Letter is a document that can be used by individuals when they want to ask their creditor to settle their debt due to their bad financial situation. The purpose of the document is to inform their creditor about their hardships and ask them to consider a debt resolution.

In this letter, the individual can not only explain why they cannot repay their debt in full but also offer the amount they can pay to their creditor as a final settlement. In return, they should ask the creditor to release the individual from any kind of liability or taking any actions to collect the debt. A Sample Letter of Request for Debt Settlement is available for download below.

The Request for Debt Settlement Letter should not be longer than one page. The creditor is more likely to consider debt settlement if the individual will provide evidence of their hardships. Individuals can attach to the request any appropriate documents they consider important.


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From: ​ J ane A. Pizer
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ​ A BC Creditors
912 Glenoaks Blvd.
Woodford, New Jersey 32809
Re: ​ D ebt Settlement Proposal
Account Number: ​ [ Account Number]
To Whom It May Concern,
I am writing to you regarding the money you are claiming payment for, on the above
account. I am unable to repay this amount in full due to the severe financial
difficulties I and my family are facing. I have recently lost both of my jobs as a result
of a car accident and subsequent two-month stay at a hospital.
I can instead offer the total amount of $2,500 as a full and final settlement. If this is
accepted, you agree that you or any associate company can take no further action
against myself to enforce or collect this debt and that I will be released from all
liability. Please also confirm that you will also mark my credit reference agency file to
show that you have accepted the above amount as the full and final settlement and that
the account is closed and paid.
I am able to pay the amount I have offered above within 10 days of receiving written
confirmation of you having accepted my offer.
Yours faithfully,
Jane A. Pizer
[Signature]
From: ​ J ane A. Pizer
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ​ A BC Creditors
912 Glenoaks Blvd.
Woodford, New Jersey 32809
Re: ​ D ebt Settlement Proposal
Account Number: ​ [ Account Number]
To Whom It May Concern,
I am writing to you regarding the money you are claiming payment for, on the above
account. I am unable to repay this amount in full due to the severe financial
difficulties I and my family are facing. I have recently lost both of my jobs as a result
of a car accident and subsequent two-month stay at a hospital.
I can instead offer the total amount of $2,500 as a full and final settlement. If this is
accepted, you agree that you or any associate company can take no further action
against myself to enforce or collect this debt and that I will be released from all
liability. Please also confirm that you will also mark my credit reference agency file to
show that you have accepted the above amount as the full and final settlement and that
the account is closed and paid.
I am able to pay the amount I have offered above within 10 days of receiving written
confirmation of you having accepted my offer.
Yours faithfully,
Jane A. Pizer
[Signature]