Debt Write-Off
If you haven't already had previous advice, it is highly recommended that you answer all of the questions on our Debt Options page which will help you decide which option to follow. You should carefully consider all options before deciding to continue further.
If you have any doubts, you should get full, independent, professional advice.
Explanation (including Advantages & Disadvantages)
In certain situations your creditors may be prepared to consider writing off your debts.
Your creditors will usually only agree to write off your debt in exceptional circumstances such as.
- low income and particularly difficult situation that is unlikely to improve long term
- long term serious health problems
- age issues
If you feel that asking for a debt write off may be appropriate to your situation you can request this yourself if and where possible however it is worth noting that there may be some creditors who will want you to use the services of a recognised adviser.
If you do decide to ask for a debt write off you will usually need to show your creditors genuine detailed proof of your situation, for example, a Financial Statement, proof of income, medical evidence / report and any other relevant evidence, before creditors will seriously consider agreeing to a debt write off.
Where relevant the CABmoney online Budgeting & Debt Calculator can be used to produce a Financial Statement.
There are also a number of standard letters available to use and send in relation to debt write off requests. If and where creditors eventually do agree to write off your debts then it is good practice to request evidence of this to be put in writing.
It is important to keep a safe file with details of all correspondence relating to any debt write off requests as this can help you keep track of the situation and information used for future reference purposes if necessary.
Example Write Off Letter
You can download a blank letter in "Rich Text Format", which will open in any word processing software (such as Microsoft Word) where you can enter your own details. Also below is a completed example which may help you to complete the letter.
Joe Bloggs
1 Any Street
Anytown
Anyshire
A1 1AA
22/12/2024
Not-nice Loans
Customer Services
Any Street
Anytown
Anyshire
A1 XXX
Our Reference: NEDCAB/ADM/123456
Dear Sir/Madam
Account Number - 1234567890
With the assistance of Citizens Advice North East Derbyshire, I now enclose a financial statement giving full details of my situation.
As you can see, after essential expenditure, there is no available income to make repayments towards this account/debt.
My situation is not likely to change due to ill health.
In these circumstances, I would like to ask you to write off the debt completely. While I realise that this is unsatisfactory, I feel it is the most practical course of action at this time.
However, if you feel it is impossible to clear the debt in its entirety, I could offer no more than a token payment of £0.50 per month.
Yours faithfully
…………………………………….
What does this mean?