A financial hardship letter explains the reasons affecting the debtor’s ability to maintain his or her financial obligations.

It must be accompanied by documentation and statements that support the difficult economic situation the debtor is going through.

Also the letter must disclose the approximate period of time the debtor would again have the ability of repayment.

(Date)
(Creditor Name)
(Address)
(Phone #)

RE: Hardship Letter

Dear Sir/Madam,

I am experiencing financial hardship due to (job loss, health problems, death in the family, high medical bills, military duty, failed business, reduced income….)

I have fallen behind on my payments because my income has dropped considerably since (month) and I can no longer afford the terms of the original loan.

Enclosed you will find some documents and statements that will substantiate my present economic situation. (Include copies of bank statements, proof of income, late notices, anything that can prove hardship.)

Since I have been a loyal customer of your financial institution for the last (2 Months, 2 Years), I’d like to ask for a (loan extension, lower interest rate, refinancing, short sale, debt settlement in the amount of ($),…)

I am sure this is only a temporary condition and very soon I will be able to make my payments in full again.

If you have any questions, please feel free to contact me at (your phone # with area code.)

Thank you for your consideration and I’d really appreciate any help you can offer me.

Sincerely,

(Debtor Name)
(Address)
(Phone #)

When writing your letter don’t forget to:

• Include a short, to the point description of the circumstances that led you to default.
• Date and keep a copy for yourself
• Include the documentation and statements
• Document every call, conversations, fax, letter, email you receive.

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