Asking a Creditor to Forgive a Debt

Use this letter to request that a creditor forgive your debt and write it off for compassionate reasons.

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  3. Letter to Creditors Requesting That They Forgive Debt - Sample Template Letter

Letter to Creditors Requesting That They Forgive Debt
Compassionate Write-Off Sample Letter to Your Creditors – Template

This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. 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]





Dear [Creditor]:

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. Due to my [medical condition/disability/age], I do not foresee any changes to my financial situation or employment status that would put me in a position to make payments any time in the future.

Please find attached [doctor’s letter(s), counsellor’s letter, case worker’s letter of support, description of condition and explanation how this affects your ability to work, any information you feel supports your statement of inability to pay now and in the future], as well as a copy of my [proof of income] and a monthly expense sheet.

I respectfully request that you forgive my alleged debt, as my condition precludes any employment, and my current and future income does not support any debt repayment.

Please respond to my request in writing to the address below at your earliest convenience. Thank you in advance for your understanding of my situation.

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.



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


What is Debt Forgiveness?

The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.

How Credit Card Debt Forgiveness Works?

Credit Card debt forgiveness works when the borrower negotiates with the lender and they agree to forgive either some portion of the debt amount (partial) or the entire outstanding balance.

How Should I Respond to a Debt Settlement Offer?

When you receive a legitimate debt settlement offer, you can either accept the settlement offer or make another debt waiver request – you’ve to write a letter to the creditor explaining the same.

How Will Debt Settlement Affect My Credit Score?

Debt settlement will generally impact your credit score negatively – when the lender agrees to close your contract on a reduced settlement amount, they are negating the actual agreement amount, which will affect your credit score.

How Long Can Debt Collectors Pursue Debt?

According to the Canadian law, debt collectors have six years to collect the debt payment, failing which they can’t sue the borrower and take any legal action against them.

Do you have questions?

Get debt help now

If you're struggling and are wondering how to move forward, give us a call. We're happy to answer your questions and help with any financial advice you need. It's possible that all you need at the present time is the right information or a plan for how to move forward once your situation improves. Give us a call if you have any questions. Speaking with us is always free, confidential and non-judgmental.

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