How to Get Your Creditor to Write Off Debt
Getting your creditor to write off debt is not a trivial matter. While there are a few legitimate options, the debt cancellation process is not suited for all financial situations. You must be prepared to prove to your creditor that you are unable to make your payments and can’t afford to pay off your debts. You can show that you are receiving unemployment benefits, and that your income is not enough to meet your obligations.
The simplest way to get your creditors to write off your debt is to ask them. You can do this over the phone, or in writing. However, in order to convince your creditors to do so, you need to explain why it is in your best interest to have your debt written off. You should also have a clear and concise budget, and have the necessary documentation to support your case.
There are also more formal solutions available. For example, you may be eligible for an Individual Voluntary Arrangement (IVA), which is a legally binding contract in which you will be given a chance to repay your debt over a period of five years. If you are unable to make your payments, you can petition for the sale of your home to cover your debt.
If you are able to prove that you have a medical condition that is preventing you from paying your debts, your creditor may be more likely to release you from your obligations. You may also be eligible for a debt write off if you are a long-term unemployed person. Depending on your situation, a debt write off may be the smartest thing you do for your financial future.
To find out if you are eligible for a write off, you should first take the time to see what you are owed. Many creditors have a list of all your debts and how much you owe. You should also take note of any special circumstances, such as an old age pension, that may indicate you are a good candidate for a debt write off. If your creditor still refuses to write off your debt, you may need to look elsewhere for assistance. You can always ask the charity StepChange for clarification.
You should also know that a write off is not a sure thing. In fact, if you have a large, unpaid debt, your creditor may not even bother to contact you. This is especially true if you are on the receiving end of a foreclosure. If you have been a long-term unemployed person, you may be deemed a risky debtor.
The most important thing to remember is that a write off does not mean you are free from your debt. You can still be liable for your debts, and if you fail to pay them, you will be put through debt enforcement actions. There are other alternatives, including bankruptcy, which can be a solution to your financial woes.
It is a good idea to learn all you can about debt. You can do this by seeking out advice from a trusted financial professional or by checking out the websites and resources offered by the aforementioned organizations.
How to Get Your Creditor to Write Off Debt was first seen on Apply for an IVA