No Ability To Make Payments Now

Use this letter to notify a creditor that you have no ability to make payments on debt right now.
  1. Home
  2. Debt Help
  3. Dealing with Creditors
  4. No Ability To Make Payments Now - Sample Template Letter to Creditor

No Ability to Make Payments Now Template
Sample Letter to Your Creditors

This is a sample template letter to your creditors explaining that you can no longer make payments at this time. Even though you have no ability to make payments now, before using it, make sure you know how to communicate effectively with your creditors.

Caution: This sample letter doesn’t work for every situation. It’s also important when communicating with creditors to use the term “alleged debt.” Here’s why. Please read this note before using this sample letter.

[Today’s Date]

[Creditor Name]
[1 Downtown Street]
[City, Province Postal Code]

 

WITHOUT PREJUDICE

 

ATTENTION: CREDIT DEPARTMENT
RE: ACCOUNT # 1234 567 890 SMITH, JOHN

Dear [Creditor]:

I am writing to inform you that my current income from [CPP, OAS, Disability Pension, Government Assistance, etc] is not enough for me to be able to make any payments towards my alleged debt at this time.

I respectfully request that you contact me by letter only going forward; please do not contact me by telephone. I will respond to any letters you send to me in a timely manner.

If at anytime I am in a position to resume payments on the alleged debt, I will contact you immediately to make appropriate arrangements.

I thank you for your patience and understanding during this difficult time.

This communication is provided solely for the purposes of notifying you to communicate in writing only and does not constitute an acknowledgement of the alleged debt described above.

 

Sincerely,

[your name]
[complete mailing address]
[phone number]
[account number]

Need more help?

See how we can help you. Just answer 4 simple questions

If you can take a minute to answer these 4 multiple-choice questions, you can find out how we can help you. It will only take a minute, and what you discover may surprise you.

Related Articles

Lower Payment Letter

Here are instructions and a sample letter to ask your creditors to accept reduced payments.

Debt Forgiveness

When repaying your debt won’t be possible, this sample letter can help you communicate that.

Credit Counselling

Are you curious about what credit counselling is or how it works? Here’s what you need to know.

 

Was this page helpful?

Helpfulness of page - face 1
Helpfulness of page - face 2
Helpfulness of page - face 3
Helpfulness of page - face 4
Helpfulness of page - face 5