Writing A Financial Hardship Letter Due To Medical Bills

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}
{Phone Number}
ATTN: {contact person}


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.


{Sender Name}

Writing An Unemployment Benefits Denial Appeal Letter

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 Veterinary Bill Hardship Letter

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

{Phone #}


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}.


{Sender Name}

Writing A Waiver Of Penalty Letter

A waiver of penalty letter is a formal request in writing to waive a penalty that has been imposed on you. For instance, you may be given a citation, a penalty fee, or a new financial obligation. If you feel that such is undeserved, or if you feel that it would unfairly affect you, then you can ask for it to be waived. That said, there is no guarantee that the issuing agency will give in to your request, but it never hurts to ask.

It is very important, however, that your waiver of penalty letter is formal. Exactly what should be included in the letter will vary depending on what type of penalty you are facing. That said, the entity that you are dealing with will likely have certain terms and conditions that will determine whether or not you are eligible to have your penalty waived. Hence, before you begin writing your letter, you have to make sure that you have looked into the different terms and conditions, thereby making sure whether or not you qualify.

How to Write a Waiver of Penalty Letter

You should always start your letter formally, explaining first why you are making such a request. You must make sure that the entity to whom you are writing to understands exactly which fees you are referring to, and whether you are requesting a full waiver or perhaps any other form of modification to the imposed penalty.

You should also provide any supporting information that you have, in as much detail as possible. List dates, places, people involved, costs incurred, venues, and so on. Do not, however, exaggerate your assertions. Similarly, you should not be emotional. The entity you are writing to cares about facts, not about feelings.

When you are ready to send your letter, you must make sure that it includes any documented evidence that you may have. This includes copies of receipts, witness statements, email printouts, photographs, and anything else that you may have that supports your statement or request. Do also make sure that you keep your own copy of all of the documents and that you send the letter via registered post, and that you get a receipt as well.

Reasons to Write a Waiver of Penalty Letter

There are a number of situations in which you may want to write a waiver of penalty letter. These include the situation when:

  1. You want to have your bank charges waived.
  2. You have been denied a visa due to a criminal history and have incurred a penalty for this. You may then also want to write a letter appealing the decision itself.
  3. You have been hunting and have been told that you did not do so in the legally accepted manner.
  4. You paid a bill late, such as a credit card bill, and incurred a late payment fee.

The above are just four examples of situations in which you may want to write such a letter. Essentially, in any situation where you may have to pay a penalty, you could write one. However, do be aware that there is no guarantee that your penalty will actually be waived.

Waiver Of Penalty Letter Example

{Phone #}


Dear {creditor}:

I am writing to request that you waive the penalty of {amount} on account number {number}. It’s true that I paid {number} days late, but there were extenuating circumstances.

For {number} years I have made monthly payments on this debt, without exception. I know the due date by heart and it is also marked on my calendar.

However, {on or around the most recent} due date, I suffered extreme hardship in the form of {accident/injury/death in the family/other emergency}. As you can imagine, my priorities instantly shifted. It wasn’t until {situation resolved} that I took a look at my missed bills and other responsibilities and realized that {creditor} was among them.

I promptly resumed payments at that time, but it was too late to avoid being assessed the late fee. I’m also concerned that this will cause my interest rate to rise, or that it will otherwise affect my good credit.

Please consider reversing the fee in light of these unusual, one-time circumstances. I wish to remain in good standing with your {company/agency}.


{Sender Name}

Writing An Eviction Hardship Letter Casual

If you are experiencing financial hardship, it is possible that you are unable to pay your rent. In an ideal situation, you will have written a hardship letter to your landlord long before you started to face eviction. However, there may be situations where that was not possible, and you are now in fear of that notice from your landlord. Meanwhile, if you rent from a private landlord, it is likely that you have some sort of personal, perhaps even amicable, relationship with him or her. Hence, you may be able to write a casual eviction hardship letter.

Basics of Writing the Casual Eviction Hardship Letter

Although you will be writing this letter in a less formal style, it does not mean that you can write it on a napkin and not pay attention to what you say. Rather, it means that you can put a little bit more feeling into what you want to write. Hence, it should still be written neatly, on proper paper, and in such a way that it isn’t filled with spelling and grammar errors. You might want to consider writing the letter by hand, rather than on a computer, but you then really have to be confident about your spelling.

What to Say in the Hardship Letter

In the letter, start by expressing your apology for being unable to pay your rent. If you are facing eviction, you must have had several arrears in your payments, which means you have not been a good tenant. You must own up to this in your letter. Explain that you know your landlord has already been generous and that he or she has shown a great deal of understanding but you are currently undergoing a certain situation (describe this). Make it very clear that you are genuinely thankful for being understanding and that you do not wish to take advantage of the landlord’s kindness.

Next, request your landlord not to push through with the eviction. Point out that you really understand how serious the situation is, and that you understand the position of the landlord in serving the eviction notice. Indicate when you expect to have the money for the rent or your proposed schedule for paying your arrears if you plan to pay in installments. Do also offer something else as a goodwill gesture. For instance, you may want to invest in a certain repair project yourself or landscape the garden at your expense.

If your financial situation is now under control, indicate that in your letter and that you plan to pay all future rents promptly. On the other hand, if your situation has not yet stabilized, explain what you are doing to remedy the situation and your proposed schedule for paying the balance. You must demonstrate that the rent payments are now a priority for you. For instance, you could provide evidence of setting up a standing order with your bank, so that the landlord can see that the rent will take precedence over any other bill that comes out of your account. End your letter by once again thanking the landlord for his or her kind consideration.

For more sample hardship letters, click here.

Eviction Hardship Letter Casual Example

{Your Name}
{Your Address}
{Your Phone #}


Dear {landlord}:

I am so incredibly sorry for being late with the rent again. I know that it was due on {date} and it is now {date}. You have been so generous and understanding in the past as I wrestled with {situation}, and I don’t want to take advantage of your kindness.

Please don’t proceed with the eviction. I definitely got the message when I saw your {letter/notice on the door}. I have the rent money and will {bring/mail} it to you immediately. Additionally, as a show of good faith, I hope you will allow me to {gesture such as upkeep of yard or repair projects}.

I promise you that I now have {situation} under control and will make prompt payment of the rent my top priority from here on out.


{Sender Name}

Writing A Lower Payments Hardship Letter

There are numerous bills that you have to pay monthly or regularly. Generally speaking, these bills, such as credit card bills, rent, or utility bills, are paid at regular intervals. If you find yourself in a position of financial hardship, which means that you are unable to make some of those monthly payments, you may find that you have to write a lower payments hardship letter.

What Can the Letter Be Used For?

In most cases, a lower payments hardship letter is written for a line of credit where some sort of interest is paid. That is because all other types of bills, such as rent, utilities, or cellphones, are paid for a service. A reduction in monthly payments on those, therefore, would also result in a reduction of usage. However, on bills such as loans, car finance, mortgages, or credit cards, you could lower payments made on interest, but still make payments overall.

Write a Lower Payments Hardship Letter Formally

You must write this type of letter formally. It should be addressed to the right person in the right department, and that it should be formatted properly. It must include your personal details and your account details as well. You should also make sure that the letter is free from spelling and grammatical errors.

Describe Your Financial Hardship

Next, write a description of the financial hardship you are experiencing. The creditor is not interested in sob stories, however, so only put in the facts. Explain why you are in hardship and the impact this has had on your ability to pay your bills. Provide documented evidence (pay slips, termination notices, bills, etc…) of your financial situation.

Indicate Your Request Clearly

You should make your request as clear as possible. Indicate that you currently make quarterly/monthly/weekly payments on a certain account, and do tell the creditor that you have been unable to make payments for a certain period of time if that is the case. A word of warning: the longer you wait in writing this type of letter, the less likely it will be that your request for lower payments will be granted. Hence, write it as soon as possible.

When you make your proposal, do not simply ask your creditor for lower payments, as they do not know what you can and can’t afford. Rather, you should be concise and tell them exactly what you are proposing. Do not make promises you can’t keep, however. Creditors would rather wait longer for their money but know they are getting it, rather than expect a shorter period of time but payments are not actually made.

Honesty and openness go a long way. Remember that the creditors are interested only in how they will get back their money. If you have not made any payments for a long period of time, they are likely to have already started legal action against you. Hence, do not bury your head in the sand, but address the problem as soon as it starts to arise.

Lower Payments Hardship Letter Example

{Your Name}
{Your Address}
{Your Phone #}


Dear {creditor}:

I am writing to request lower {weekly/monthly/quarterly} payments on {debt}.

Your records should indicate that I {have/have not} kept up with the required payments of {amount}. But now, due to {situation}, I can no longer afford that amount. {Describe financial/life conditions}.

I would like to propose lower {weekly/monthly/quarterly} payments of {amount}. I know this will extend the length of the loan that was offered to me, but the only alternative would be {default/bankruptcy/etc.}.

Please let me know if this arrangement works for you and I will immediately send the adjusted payment amount.


{Sender Name}

For more sample hardship letters, click here.

Writing A Hardship Letter 401k Withdrawal

Normally, you are not allowed to take money out of a 401k, but some exceptions do exist. If you are undergoing serious financial hardship, the Internal Revenue Service (IRS) does offer hardship withdrawal solutions. However, to be considered, employers must also allow such a withdrawal, and you will need to write a hardship letter to prove your case as well.

Writing this type of letter is quite difficult. First of all, your employer will need to make sure that you qualify for a withdrawal under the IRS rules. Additionally, you have to be able to demonstrate that your financial hardship is not just something that is of a short-duration, but one that it is a very heavy burden for you.

It is very important that you write your letter properly. It has to be written in a formal style and there should be no grammatical or spelling errors in it. The recipient of the letter should be the person within your company who manages the retirement accounts. You must also make sure that you keep copies of any letters you send or receive. And do make sure that if you have any documents that prove your hardship, you should include (and copy) them as well.

Reasons for Qualification

Common qualification reasons include:

  • Medical expenses for self or dependent
  • Making a down payment on a primary home
  • Need to avoid eviction or foreclosure on a primary home
  • Expenses for education
  • Home repairs that are essential
  • Funeral expenses

What to Do If You Qualify

If you do qualify, you must then look at the hardship withdrawals that your employer offers and speak to your supervisor to find out to whom to address the hardship letter. There are significant legal issues to face, and deciding whether or not you will be allowed a withdrawal is complex. If your company has its own guidelines in place, they may be tougher than the federal criteria. Furthermore, you will have to pay taxes on the withdrawal, and sometimes you will have to pay a penalty on it as well.

Clearly, withdrawing from a 401k should only be done in extreme situations. It will have a significant impact both on your income today and in the future. Additionally, you may not be allowed to add new funds to your 401k for a 12 month period as a result of your withdrawal. These are all significant considerations to make.

What to Do After Sending the Hardship Letter

Once you have sent your hardship letter requesting a withdrawal, you should call them through the telephone after around one week to make sure that it has been received. In fact, it is recommended to send it through registered mail, requesting a receipt as well. However, it is important to understand that your employer is under no obligation to allow your withdrawal. Because the process is so long and complicated, it is important that you get the ball rolling as soon as you start to realize that financial difficulties may lay ahead. There is no way, in other words, that you will have a withdrawal in your account within just a few days, so it might even be too late to get you out of your hardship.

Hardship Letter 401k Withdrawal Examples

{Your Name}
{Your Address}
{Your Phone #}
{Your Account #}


To Whom It May Concern:

Please consider this a formal request for a {monetary amount} withdrawal from my 401K account due to financial hardship. At this time, I am facing {foreclosure, bankruptcy, eviction, educational termination, etc.} due to {disability, illness, medical bills not covered by insurance, etc.}.

If approved, the withdrawal will allow me to {pay my rent, afford daily expenses, stay in school, meet medical needs} for {amount of time}. This is an immediate and unbearable burden on me and my family. I have already attempted alternative options, such as {taking out a commercial loan, drawing from an IRA, etc.}, but unfortunately, {result}.

This withdrawal will save me from having to {drop out, foreclose, declare bankruptcy}. I appreciate your time and consideration with regards to my request. Attached are my financial statements, pay stubs, and loan responses.

Thank you,

{Sender Name}

Writing A Hardship Letter Extended Leave

There are numerous types of hardship letters. Usually, they are requests for financial assistance, either in the provision of a grant, for instance, for funeral expenses; or a delay of taking payments, for example, with a loan or mortgage. However, another possible reason why you may write a hardship letter is if you want to request an extended leave.

When Do You Need an Extended Leave Hardship Letter?

When you are employed, you will be allocated a number of days of leave per year, which you can use at your personal discretion. A lot of employers also have other forms of leave in place, such as maternity leave and even paternity leave, time off for funerals, parental leave if a child is sick, and so on. Sometimes, a situation may occur in which you need more leaves, for a variety of reasons. Perhaps you have a relative who has developed a sudden but serious illness and requires care. Or you may have been declared bankrupt and are struggling to meet the responsibilities associated with that. These are all cases in which you may want to request an extended leave.

How to Write a Hardship Letter for Extended Leave

All hardship letters, regardless of purpose, should never be longer than one page. They should be short but to the point, in other words. They should also be honest and provide a clear and concise explanation of what is going on. Your letter has to be formal, explaining that you have unexpected hardship that requires you to request that extended leave.

Your letter should explain when you first started to experience difficulties, which is something that your employer should already be aware of. It should highlight what has caused an unexpected situation, such as illness, death in the family, disability, and so on. It should also explain that you have already used all your paid leave in accordance to corporate policy. Your letter should also indicate what would be the consequences if you are unable to be on leave, and why that would be so. Make sure that you also indicate the length of your extended leave.

Make sure that your letter also expresses your gratitude for working in your company. Showcase that you have been an excellent employee and that you feel committed to the organization. The letter should make it clear that you do not want to leave the company as a whole, but rather that you would prefer to have an extended leave. Be accommodating, however. Perhaps you could work a few hours during the week, even if it is to train a temporary replacement. More than anything, tell your employer that you intend to come back as soon as you possibly can.

Last but not least, place the ball in the court of your employer. Ask them to contact you with possible solutions to the dilemma, while making it clear that you would like to find a mutually agreeable solution. In doing so, you are demonstrating to your company that you are a committed employee.

Hardship Letter Extended Leave Example

{Your Name}
{Your Address}
{Your Phone #}


Dear {Mr./Ms. BossName}:

I would like to make a formal request to take an extended leave from my position as {position} here at {Company Name} on account of severe hardship.

As you may already know, as of {date} I have been struggling to accommodate the unforeseen impact of {disability, sick family member, death in the family, bankruptcy, illness, etc.}. I have taken all the paid leave I am able to take according to corporate policy, but if I don’t continue to {description of action taken while on leave}, it will result in {consequence}.

I love working at this company, and I have always made every effort to be a model employee. I feel that the work I do here is good and important and I don’t want to leave it. Instead, I am asking for extended leave until {date/further notice} so that I can {recover, care for a relative, etc.}. I can come in {part-time, a few days a week, etc.} to train a temporary replacement, but it is my hope to return to work as soon as I am able.

Please let me know if there is a way to work this out between us. Thank you for your time and your consideration in this matter.

Thank you,

{Sender Name}

Writing A Hardship Letter Loan Deferment

In writing a hardship letter loan deferment, you will need to fully demonstrate what is your current financial situation. It should be noted that in order to be able to apply for some sort of loan deferment, you will have to meet a number of specific criteria. Usually, such a deferment will apply to mortgage payments and they are designed to help people avoid foreclosure.

In your letter, you will have the chance to highlight your circumstances, and all that you have done to turn it around. It is your chance to show that you suffer from an “acceptable” hardship. Mainly, it is an opportunity to prove that, as soon as you can, you will continue with your payments and repay what you owe.

Acceptable Hardships

There are a number of acceptable hardships, including:

  1. Involuntary reduction in income through loss of job or change in hours
  2. Death of a family member
  3. Illness of a family member
  4. Separation or divorce
  5. Forced relocation for work
  6. Shock from the adjustable rate reset
  7. New and higher expenses

How to Write a Convincing Letter

Your letter needs to be short and to the point, while providing your lender with a clear understanding of what is going on. Remember that lenders constantly receive this type of letter, with people looking for ways to keep their home if they experience some difficulties, so yours has to stand out. Here are some key tips:

  • Keep it short and sweet.
  • Clearly describe your hardship and why you are in that situation. Tell the lender when your hardship started, which should be linked to when you began to have payment difficulties. Make sure that the connection between missed payments and your hardship is established.
  • Explain what you have done and/or doing to improve the situation.
  • Present a plan for you to get back on track.
  • Make it clear that you are responsible and motivated to get back on track, and showcase that you are a pillar of the community, for instance, by discussing your volunteer work or other community activities.

You are not alone in your hardship. In fact, although the recession is said to be over, many people are having some kind of difficulty. Banks are quite forgiving if you communicate with them and that you are honest about your situation.

Last but not least, be aware of the fact that writing a hardship letter loan deferment is just the first part of your overall loan modification. Your lender will get in touch with you to request proof of your new income and they will also want a full financial statement. If you do contact your lender with a request for loan deferment, make sure that you have studied the process properly and that you are armed with negotiating tips to help you be more likely to be successful. Make sure that you also look into the different approval guidelines of your lender, and whether the stimulus home saver plan implemented by President Obama is applicable to you. This way, you will know exactly what you are and aren’t entitled to.

Hardship Letter Loan Deferment Example

{Your Name}
{Your Address}
{Your Phone #}
{Your Loan #}


To Whom It May Concern:

My name is {Name} and my account is {number}. I am writing to request a one-time deferment of my loan for the next {amount of time} due to severe hardship.

For the last {amount of time}, I have paid {amount} of my loan every {interval}. I have always made an effort to pay my installments on time and in full. However, as of {date}, I was met with the unexpected hardship of {brief description of financial, professional, family, or medical hardship}. Since the incident, I have only been able to afford the most basic necessities.

I am making every effort to get back on my feet, and I already {lined up a new job, recovered from my injury, etc.}. If I can defer my loan until {date}, it will allow me to recover from this incident and return to my normal payment plan by {date}. I am open to installment additions and plan adjustments at that point, and will try to accommodate any necessary changes.

Attached are my financial statements and {medical bills, pay stubs, etc.}. Thank you for your consideration and understanding. I hope to hear from you at your earliest convenience.

Thank you,

{Sender Name}

Writing A Hardship Letter For Small Business

If you have a small business and you are facing financial difficulties that prevent you from being able to repay a debt, you may want to consider writing a hardship letter for small business. It is very important, when you do so, that you focus on the facts and that you explain your financial circumstances in a clear, rational manner. You are likely to feel emotional about your situation, but you must try not to present a sob story. Creditors understand that being in financial difficulty can make a person emotional. However, they usually receive hundreds of these letters a week and want to be able to focus immediately on the facts. Keep it short and to the point, and you will be far more likely to get a response.

Steps in Writing a Hardship Letter for Small Business

  1. Your letter should be formally presented. Address it to the right person, and make sure it is free from spelling and grammar errors. It should also include your customer number in the subject line, so the creditor can find your information straight away. The subject line should also make it clear why you are writing.
  2. The first paragraph should explain why you have written the letter, and that you aim to find a solution. For instance, if you have rented a commercial property and you are struggling to pay your lease, then you should indicate how much you should be paying each month, how many payments you have already missed, and how long you expect your difficulties to continue. Explain that you hope to find an arrangement where you can continue to rent the property, while getting your account up to date over time.
  3. You should then explain why you are in such a situation. This is where you need to try to avoid becoming emotional. You must supply facts, using figures, evidence, documents, and more. If you present things sensibly, the response is likely to be more sensible as well.
  4. You should also describe your plan on how to turn things around. However, make sure that you are honest about this and don’t make empty promises. For instance, you can state that you have cut costs through redundancies, and how much this will save. You must make it clear that you are doing all you can to stay afloat. Creditors are more likely to be sympathetic if they see that you are really trying.
  5. Explain how you plan to make up for the missed payments. Show good faith by proposing a workable payment scheme. Give a specific length of time after which you expect to be back on track with your payments. Again, be specific, showing figures, dates, and more. Make sure not to promise anything that you won’t be able to do.
  6. Close the letter by apologizing, and making it clear that you hope to come to some sort of resolution. Indicate that if they have a different suggestion, you will be happy to hear it and consider it. End the letter by thanking the creditor for his or her time and consideration.

Hardship Letter For Small Business Example