"Lump Sum Debt Settlement Letter Template"

A Lump Sum Debt Settlement Letter is a document that can be used when a debtor would like to offer their creditor a sum of money in exchange for a debt settlement. The purpose of the letter is to ask the creditor for debt forgiveness and offer them a lump sum.

Generally, with this letter, a debtor offers a specific amount of money - a portion of their debt - and asks the creditor to forgive the rest. In some cases, when the creditor understands the chances that the debtor will cover the whole debt are too small, they agree to this way of debt settlement. A Lump Sum Debt Settlement Letter template can be downloaded below.

To make sure your letter contains all of the necessary parts, you can follow an approximate plan:

  1. Introduction. You can start your letter by stating the reason for writing and providing the details of your debt (when you borrowed money, how much you borrowed, etc.).
  2. Debt Settlement Details. In this part, you can describe your offer. It includes stating how much you are able to pay back, when and which way you can transfer the money, etc.
  3. Conclusion. At the end, you can thank the creditor for their time and express your hope to hear from them soon.

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

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Lump Sum Debt Settlement Letter
From: ___________________________
To:______________________________
Sender’s Name
Claimant's Name
_________________________________
_________________________________
_________________________________
_________________________________
Sender’s Address
Claimant's Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
Date
_________________________________
Account Number
Dear ____________________________,
Claimant's Name
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 following:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
I can instead offer the total amount of $__________________ as a full and final settlement.
If this is accepted, you agree that you or any associate company can take no further action
against me 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.
©
TEMPLATEROLLER.COM
Lump Sum Debt Settlement Letter
From: ___________________________
To:______________________________
Sender’s Name
Claimant's Name
_________________________________
_________________________________
_________________________________
_________________________________
Sender’s Address
Claimant's Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
Date
_________________________________
Account Number
Dear ____________________________,
Claimant's Name
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 following:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
I can instead offer the total amount of $__________________ as a full and final settlement.
If this is accepted, you agree that you or any associate company can take no further action
against me 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.
©
TEMPLATEROLLER.COM
I am able to pay the amount I have offered within __________________ once you have
accepted my offer and I receive written notice of your decision.
Please confirm where to make payment to.
Sincerely,
_______________________________
Sender’s Name
_______________________________
Sender’s Signature
©
TEMPLATEROLLER.COM
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