Debt Settlement Legal Letter

Sample Letter 1

(Creditor’s name), the Creditor/Creditor’s Representative and (debtor’s name), the Debtor agree to negotiate and settle the debt under the following terms and conditions.

The Creditor and Debtor agree that the current outstanding debt is <$ balance amount>. Both parties agree that the Creditor will accept a cash payment of $_________ towards settlement of the debt in full. The Creditor agrees to compromise the debt under the condition that he’ll receive the payment by 2012-06-13 15:37:29.

If the Debtor fails to send in the amount agreed by , the Creditor shall immediately demand the payment of the original amount owed by the Debtor. (Creditor’s name) also declares that he is authorized to act as an agent of the Creditor’s company.

This agreement for debt settlement shall be binding upon the Creditor, Debtor and their successors and assignees.

Dated:

Signature:

(Creditor’s name),

Creditor

Signature

(Debtor’s name),

Debtor

Sample Letter 2

Your Name

Your Address

Your Phone #

Creditor’s Name

Department

Creditor’s Address

Date

Dear Creditor,

Re: Account Number__________

In response to my recent conversation with your customer service representative, I’d like to present a complete assessment of my financial situation.

Unfortunately, I have a lot of debt and not enough funds to pay all my creditors. So, I’ll be able to negotiate and settle debt with a few creditors only. I have enclosed a copy of my financial statement with details of my monthly income and expenses. This will help you assess my financial situation and give you an idea as to why I have requested a debt settlement.

The final debt amount that we agreed upon is $_________. As part of the settlement agreement, I request you to co-ordinate with the credit bureaus in order to remove negative entry (late payment, collections etc) on my account from the credit report.

Given my situation, I hope you’ll refrain from taking further action against me as payment will be maintained as decided in the agreement. I shall review my financial situation on a regular basis and inform you about any change, positive or negative.

I hope you’ll understand my situation and co-operate with me in this hour of financial crisis. I look forward to receiving a written confirmation from your end regarding the debt settlement agreement.

Yours truly,

Your Signature

Your Name

For more useful information on debt settlement legal letters, please visit Total Debt Relief.