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 of an older age.
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.
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.
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.
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 My Budget Planner 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.