Writing A Financial Hardship Letter Due To Medical Bills

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Medical bills tend to be substantial bills and if you incur a sudden expensive illness or a major accident, they can mount up very quickly. You may need multiple, lengthy treatments and your insurance may not cover all of those expenses. A lot of people don’t realize that credit card debt and medical debt are quite similar. Namely, they are both unsecured, which means they can both be negotiated. One way to get the ball rolling, is by writing a hardship letter.

Tips for Writing a Financial Hardship Letter Due to Medical Bills

The healthcare industry is very inflexible in terms of collecting on medical bills. However, this does not mean that you have to pay more than you can, nor do you have to take out a loan. Doing so will only make your situation worse.

First of all, therefore, you should determine whether the debt is actually correct. It is quite possible that there has been an error in your medical bill, particularly when you consider that studies have shown that up to 80% of them do indeed have some sort of error. Hence, make sure to look over the bill and ask a trusted person to do the same. You can find online help on how to read your bill as well.

Once you have determined the amount you actually owe, you need to negotiate with the medical institution to see if a repayment plan can be created. You should not have to put yourself in greater financial difficulty just to pay for your bill. This is because, if you do this, you may not be able to receive Medicaid later on in life. What you need to do is immediately tell the creditor that you cannot pay. Debt used to be referred to collection agencies after 150 days, but this is now usually between 60 and 90 days, so make sure you do things quickly. Consider that collection agencies may sue you for as little as $100, and you will see how important it is to take action now.

Make sure you keep documented evidence of everything that you do. Hence, do not speak to the medical provider – or a debt collection agency – over the telephone, but do everything in writing. You should also make payments each month on the bill that you can afford, even if an agreement has not yet been reached. This shows willingness on your part.

Some important tips for your hardship letter:

  1. Keep the letter short and to the point. Try to stick to a single page.
  2. Include a financial statement that shows your income and expenses.
  3. Always be polite and courteous. After all, you are asking for help.
  4. Explain that you are in hardship and why, and how that is linked to the medical condition in question.
  5. Offer a repayment plan that you can afford, stating when you will make the payment, how, and for how long.
  6. Address it to an actual individual, which gives it a personal touch.

If your repayment offer is accepted, make sure that you receive a confirmation for that in writing.

Financial Hardship Letter Due To Medical Bills Example

{Your Name}
{Your Address}
{Your Phone Number}

{Hospital/Clinic/Doctor Name}
{Address}
{Phone Number}
ATTN: {contact person}

{Date}

RE: {consolidation/restructuring/forgiveness} of debt on medical bills for {Name}, account {number}

To Whom It May Concern:

My name is {Name}, and I was a patient at {hospital/clinic/doctor’s office} on {date}, where I received {a specific procedure, treatment, etc.}. {Indicate what your insurance covered of this procedure, or note that you did not have insurance at the time}.

I have been on a payment plan that has me paying {amount in dollars} per month. But I have unfortunately run into significant troubles in my life, which have made it impossible for me to continue to keep up with this payment plan. Due to {death in the family, loss of a job, other medical problems, etc.}, I am dealing with making constant decisions about which of my many bills is most important each month.

I have attached {relevant financial documents} to this letter, so that you can see that my monthly income is only {amount in dollars}, all of which must go to {mortgage, rent, other payments}, leaving very little left for the amount I owe you.

{Indicate how much you can pay each month, or indicate that you would like to have your debt forgiven due to this hardship} . I hope that we can work out a plan that will work for both parties.

Please contact me as soon as possible so that we can begin this process.

Sincerely,

{Sender Name}

Writing An Unemployment Benefits Denial Appeal Letter

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The job market today still has some problems and there are some claims for unemployment compensation. However, when people apply to receive this type of benefit, their request may be denied for some reason. Indeed, employers are within their rights to deny or dispute any claim, and there are various reasons as to why a claim may be disallowed in its entirety. You have to meet some very stringent rules and regulations and those are not always in your favor. There could be loopholes, however, and it is also possible that a mistake was made in denying your claim. Hence, if you feel that you do deserve compensation, then you should appeal the decision. Below are the steps to follow in writing an unemployment benefits denial appeal letter.

1. Have Your Paperwork in Order

You must write an appeal letter to start the process. Winning a case on appeal is quite common, particularly if you are able to demonstrate that some information has been overlooked, or if new information is available. The appeal letter itself is a formality, but it is an important one. It must be properly addressed to the right agency and department. It is usual that there are several divisions within an agency, so addressing it to the correct place is essential to have your appeal considered as soon as possible. There may also be an appeal form that you have to complete. If so, add it to your letter, rather than using it to replace your letter in full.

2. Write a Professional Letter

Officials will closely scrutinize the letter that you have written. Hence, it should be professional and you should make sure that there are no spelling and grammar mistakes. What you need to aim for is effective communication that encourages officials to consider your story.

Make sure that you start your letter by indicating the case number and why your claim had been denied. Then immediately follow with explanation as to why you believe this to be unfair or incorrect. If you have any evidence to prove your point, include this in your letter of appeal as well. Any evidence that you have of unfair treatment by your employer or of false allegations must be added to your letter as documented attachments.

3. Get Your Witnesses Together

Last but not least, if you make any claims that have been witnessed by others, or if you have witnesses to prove that the claims made against you are untrue, this has to be added as well. Their names and contact details should be included in your letter. This is important information that will usually grant you at least the right to have your case looked at once more.

You do have to be careful not to make your letter too long. The recommendation of experts is to stick to no more than two paragraphs: one explains the original situation and other explains the new evidence. Do not expect that those who will read the letter will be able to absorb everything if you make the letter longer than that.

Unemployment Benefits Denial Appeal Letter Example

Writing A Hardship Letter For Deed In Lieu Of Foreclosure

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If you are facing foreclosure and you want to avoid it through a deed in lieu of foreclosure, then you will need to write a hardship letter. A deed in lieu is a form of loss mitigation, which usually means completing a standard hardship affidavit, although separate letters may also be required. As part of this process, you will usually also have to provide information such as bank statements, financial statements, tax returns, and pay stubs. Put together, these can demonstrate your hardship.

Defining Hardship

You are considered as experiencing hardship if things happen over which you have no control, and that lead to you being unable to make your mortgage payments. There are a number of situations in which a deed in lieu of foreclosure may be considered to resolve hardship, such as:

  1. An involuntary decline in income or job loss
  2. Illness of a family member of the homeowner
  3. Separation or divorce
  4. Medical expenses
  5. Military service
  6. A reset of the adjustable interest rate
  7. A natural disaster

What to Include in a Hardship Letter for Deed in Lieu of Foreclosure

A lot of people write their hardship letter without really thinking about what to include in it. Worse still, some people simply copy an online template word for word. Remember that there are hundreds of people writing these letters on a daily basis, so you need to write something that stands out. Templates should only be used as a guide. Rather, you need to focus on providing information that is pertinent and personal to you and your situation. At the same time, you have to make sure that you don’t turn the letter into a sob story. The lender wants to hear the facts, and you should try to present those facts on a single page.

A hardship letter is designed to explain why you are in a certain situation and that you would be able to avoid foreclosure with their help. You must make your wishes clear, such as receiving the deed in lieu of foreclosure, before you move into an explanation of your hardship. This ensures that a mortgage expert reads the rest with the understanding of where you are going.

Make sure, as well, that your letter makes it clear that you are not trying to shirk from your financial obligations. Rather, you should state that you want to make certain payments until you have been able to rectify your situation. Be realistic in this and do not make promises that you are not sure you will be able to keep. Promising just $10 a month is better than promising $100 and then not making the payment.

Nobody wants to be in a situation of hardship. Your lender understands that and taking foreclosure action is something that they will want to avoid as much as you do. Hence, if you are honest, present them with facts, and show you are willing to work at the situation, you might be able to get some leniency and receive a deed in lieu of foreclosure arrangement.

Hardship Letter For Deed In Lieu Of Foreclosure Example

{Your Name}
{Your Address}
{Address Continued}
{Your Phone Number}

{Mortgage Company Name}
ATTN: {appropriate department}
{Address}
{Address Continued}

{Date}

RE: deed in lieu of foreclosure on {address}

To Whom It May Concern:

I am writing to begin the process of offering the deed to my home, in lieu of foreclosure.

I have missed {number} payments on my mortgage with your company, due to significant financial hardship in my life. The hardship was caused by {detail the reasons you’re struggling to make the payments; be specific and emotional}.

The home has been on the market for {length of time}, and in that time the asking price has been reduced from {amount in dollars} to {amount in dollars}. I do not have a buyer willing to purchase the home, despite my best efforts to find one, so a short sale is not an option.

I believe I will be unsuccessful in my attempts to sell this home, nor will I be able to make the mortgage payments. Rather than deal with the foreclosure process, I would like to give you the deed to my home, in exchange for forgiveness on the loan. I do not have a second mortgage, and there are no other liens on the property.

I have attached all relevant documents for the house and for my current economic situation.

Please contact me as soon as possible so that we may begin this process.

Sincerely,

{Sender Name}

Writing A Hardship Letter To Hospital

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If you needed to have medical treatment in a hospital, then you may be faced with a substantial bill. Even if you have a good health insurance, it is possible that they don’t cover the bill in full. Indeed, this is how many people end up in significant debt. If that has happened to you, you should not automatically look at selling your possessions or taking out a loan to pay for your medical bill. Rather, you should consider writing to the hospital to ask for some leniency.

Guidelines for Writing a Hardship Letter to Hospital

Your letter should be written formally. This means that you address it to the right department and preferably to the actual person who will be dealing with your case. The letter should also be dated, and it should be free from grammatical and spelling errors. You should also make sure that it includes your account or hospital number, and other identifying information about yourself.

Starting the Letter

Start your letter by explaining what you are asking for. This may be debt forgiveness, restructuring, or consolidation. Go on to explain which medical facility you attended, which procedure or treatment you received, and why it was necessary. State that your insurance company agreed to cover a certain amount of that bill (indicate how much), leaving a certain balance. Again, indicate how much. If you did not have insurance at all at the time, make sure to indicate that as well.

Content of the Hardship Letter

You should then offer your suggestion. If you wish to have the debt forgiven in full, explain why you feel this to be necessary. Most of the time, however, you will ask for some sort of payment plan to be considered instead. Hence, offer a certain amount each month, stating when and how you will pay this. Make sure that you can actually afford this amount, as you should never make promises that you can’t keep.

It is likely that you had already been paying a certain amount, but you now find yourself in a situation in which you can no longer afford this. If that is the case, you must indicate what hardship you are currently experiencing. It is important to be factual here. The hospital is not interested in a sob story or in an emotional account. Rather, they want to know why the payment for the bill will not be received at the specified date.

You must offer evidence for everything that you state. Hence, include copies of your medical bills and your previous agreement. Include statements of the payments that you have already made, and provide documented evidence of your current income and expenses, such as a financial statement. Demonstrate what changes you have already made to increase your income or decrease your expenses and why this has not been enough to make the situation better.

Most of the time, hospitals have programs in place for people in your situation. If you know what these programs are, apply for them using the relevant forms if there are any. If not, ask whether you could apply under any of their hardship programs.

Hardship Letter To Hospital Example

{Your Name}
{Your Address}
{Your Phone Number}

{Hospital Name}
{Address}
{Phone Number}
ATTN: {contact person}

{Date}

RE: {consolidation/restructuring/forgiveness} of debt on medical bills for {Name}, account {number}

To Whom It May Concern:

My name is {Name}, and I was a patient at {hospital name} on {date}, where I received{a specific procedure, treatment, etc.}. My insurance covered {amount in dollars}, which left a balance of{amount in dollars} for me to deal with myself. { Or note that you did not have insurance at the time of this incident}.

I worked out a payment plan of {amount in dollars} per month, which I have been paying since {date}. However, due to {death in the family, loss of a job, other medical problems, etc.; be specific and emotional}, I am struggling greatly with making ends meet every month.

I have attached {relevant financial documents} to this letter, so that you can see that my monthly income is only {amount in dollars}, all of which must go to {mortgage, rent, other payments}, leaving very little left for the amount I owe you.

I am now only able to pay {amount in dollars} every month {or indicate that you would like to have your debt forgiven due to this hardship}. I know that the hospital has programs in place for situations like mine, and I hope that we can work out a plan that will satisfy both of us.

Please contact me as soon as possible so that we can begin this process.

Sincerely,

{Sender Name}

Writing A Veterinary Bill Hardship Letter

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Veterinary bills are expensive. Nevertheless, if your beloved pet falls ill but you don’t have sufficient funds for it, you cannot allow it to suffer, much less die. Instead, you usually take your pet to the vet and explain the situation. There are numerous programs available to assist people in financial hardship who have high vet bills. Most of the time, the vet will want you to write a formal hardship letter that highlights the situation, so that a solution can be found.

Basic Rules in Writing the Letter

The letter should be written formally and in the correct format. It should clearly address the vet, or the name of the veterinary office. Include your account number, or the number of the bill you sent out. Make sure someone proofreads it for you, or read it again a day after writing it yourself, as it should also be free of grammar and spelling mistakes.

Specifics of the Hardship Letter

Start your letter by expressing your gratitude for the care they provided to your pet. Include their name and a brief description of what was wrong. Make sure to include dates as well. Do also show your gratitude for the fact that the veterinary office considered treating your pet despite the fact that you found yourself unable to pay. This shows respect for the fact that the vet trusted you, and you should not break this trust.

Next, explain that you are in a situation of financial hardship, and that you need some degree of flexibility in paying for the treatment of your pet. It is likely that your vet will have offered some sort of credit line but if you are in a situation of financial hardship, your application will likely have been declined. Also describe your other attempts to gain access to funds, such as crowdsourcing, and how successful (or not) these have been.

Make it clear that you do not expect the bill to go away, or even for the amount to be reduced. Rather, you should be looking at a way of paying the balance off over a certain period of time. Make an offer of a specific amount that you are able to pay each month. Do not promise more than you are actually able to pay. If you did crowdsource for your pet’s treatment, and you received some funds towards that, then make sure that you include that in your offer. Furthermore, if you have any particular skills that could be of benefit to the vet’s office, offer those in lieu of payment as well.

Veterinarians have a passion for animals, not for money. Hence, so long as you make it abundantly clear that they were able to save your pet’s life, and that you have every intention to pay back the money you owe, it is likely that they will accept your offer. This is also because legal recovery actions are incredibly expensive, and the vet would prefer to come to some sort of voluntary agreement with you, rather than going through the legal system.

Veterinary Bill Hardship Letter Example

{Name}
{Address}
{Phone #}

{Date}

Dear {veterinary office}:

Thank you from the bottom of my heart for your skilled and compassionate care of {pet’s name} during {his/her} recent {injury/illness}.

I can also never thank you enough for focusing more on the emergency medical situation than on billing matters. Your respect and trust is much appreciated.

With that being said, I will need some flexibility in paying off the costs of {pet name}’s treatment. My application for the credit line you recommended was declined, and my efforts at crowdsourcing funding gathered only {amount}.

I’m not seeking to have you reduce the bill in any way. Rather, I’m hoping you can see your way clear to accept payments of {amount} per month. Additionally, please let me know if there is any work I can do in or around your veterinary office to help offset what I owe you. My skills include {landscaping/marketing/painting/etc.}.

Thank you again for everything. {Pet’s name} is {home with me/at peace over the Rainbow Bridge}.

Sincerely,

{Sender Name}