Sample "Debt Forgiveness Letter"

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, you will need to write a Debt Forgiveness Letter. In this letter you will explain your situation and why you feel you are unable to repay the remaining balance.

A person could find themself in this situation due to unforeseen events, such as a loss of income, unexpected medical bills, natural disaster, or a failed business. A Debt Forgiveness Letter Sample can be found through the link below.

When writing a Debt Forgiveness Letter, include the following details:

  1. Your name and mailing information.
  2. Today's Date.
  3. Name of the creditor.
  4. Memo line explaining what the letter is about.
  5. Opening salutation.
  6. Explanation about the nature of the letter and that you will not be able to repay the full amount of debt owed, and whether you are requesting full or partial debt forgiveness.
    • You will want to give a clear and full description why you are unable to repay the amount and if you previously had a reliable track record of timely payments.
  7. Close by providing the best way to contact you.
  8. Closing salutation and signature.

Haven't found the template you're looking for? Take a look at the related templates and samples below:

ADVERTISEMENT
ADVERTISEMENT

Download Sample "Debt Forgiveness Letter"

Download PDF

Fill PDF online

Rate (4.1 / 5) 11 votes
Sample Debt Forgiveness Letter
From: ​ J ane Smith
1252 Penrose Boulevard
Chicago, Illinois 60144
(222)-555-2244
janesmith@email.com
[​
D ate​
]
To: ​ A ndy Raynolds
Project Manager
Smithereen Inc.
422 Green Street
Chicago, Illinois 60122
Re: ​ D ebt Forgiveness Letter
Respected Mr. Raynolds,
As you know, you owe us a total of [​
S um​
] , which you should have repaid two years
ago. Our effort to compel you to repay the debt has yielded no viable fruits thus far.
In light of this, and considering the current circumstances, we have taken it upon
ourselves to relieve you of the debt fully.
We have also decided to return the collateral we held in the lien, pending your full
repayment of the amount owed. Many thanks for being a loyal customer to us.
We look forward also to transacting business with you.
Sincerely,
Jane Smith
[​
S ignature​
]
©​ ​ ​ ​
T EMPLATEROLLER.COM​
Sample Debt Forgiveness Letter
From: ​ J ane Smith
1252 Penrose Boulevard
Chicago, Illinois 60144
(222)-555-2244
janesmith@email.com
[​
D ate​
]
To: ​ A ndy Raynolds
Project Manager
Smithereen Inc.
422 Green Street
Chicago, Illinois 60122
Re: ​ D ebt Forgiveness Letter
Respected Mr. Raynolds,
As you know, you owe us a total of [​
S um​
] , which you should have repaid two years
ago. Our effort to compel you to repay the debt has yielded no viable fruits thus far.
In light of this, and considering the current circumstances, we have taken it upon
ourselves to relieve you of the debt fully.
We have also decided to return the collateral we held in the lien, pending your full
repayment of the amount owed. Many thanks for being a loyal customer to us.
We look forward also to transacting business with you.
Sincerely,
Jane Smith
[​
S ignature​
]
©​ ​ ​ ​
T EMPLATEROLLER.COM​