Debt Write-Off

If you have no spare money to pay off your debts and have no money or savings, some or all of your creditors may agree to write off your debts.

In certain circumstances it may not be financially worthwhile for creditors to pursue debt payments or administer token payments long term.

Debt write offs will usually only be considered by creditors in exceptional circumstances.

It is most likely to happen if you have low income, no spare money and your circumstances are unlikely to improve. Examples are that you may have serious long term health issues or be very elderly.

You will usually need to provide clear evidence of your situation, for example, financial statement, proof of income, medical evidence, before creditors will agree.

If a creditor agrees to a debt write off it is always best to request that they confirm this in writing.

Some Advantages

Relief from unwanted anxiety & stress
No further recovery action
Potential fresh start

Some Disadvantages

Some creditors may not agree to a write off
Creditors may agree but not confirm in writing
No guarantee that creditors will not pursue in the future
Your credit file will still be affected

If you feel that asking for a debt write off may be appropriate to your situation you can do this yourself where possible however there may be creditors who may want a recognised adviser to make this request on your behalf.

Where to get free advice

What do I do next?

For best results, please answer all questions before continuing
If you want to explore the other options for dealing with debt you can read about other options
If you are sure that this is the right option for you then you can write off your debts