Hardship Letter for Debt Settlement
I. Introduction
This hardship letter is prepared to convey the financial difficulties currently faced by [YOUR NAME] and to negotiate a feasible settlement regarding the debt owed to [CREDITOR'S NAME]. This document outlines the key aspects of [YOUR NAME]'s financial situation and proposes a settlement to ensure mutual benefit.
II. Background
[YOUR NAME] has been a customer of [CREDITOR'S NAME] since [YEAR]. Due to unexpected hardships, including [DESCRIBE HARDSHIPS SUCH AS 'LOSS OF EMPLOYMENT', 'ILLNESS', 'UNFORESEEN EXPENSES', ETC.], maintaining timely payments has become increasingly difficult.
III. Current Financial Situation
An overview of [YOUR NAME]'s current financial details is provided below:
Monthly Income: [YOUR MONTHLY INCOME]
Monthly Expenses: [YOUR MONTHLY EXPENSES]
Total Outstanding Debt: [YOUR TOTAL DEBT]
Details of Other Outstanding Credits: [OTHER CREDIT DETAILS]
IV. Settlement Proposal
In consideration of the circumstances, [YOUR NAME] proposes the following terms for the settlement of the debt owed to [CREDITOR'S NAME]:
These terms are suggested with the intent to settle the outstanding obligations while ensuring that [YOUR NAME] can manage other necessary financial responsibilities.
V. Recitals
RECITAL 1: This hardship letter is a sincere attempt by [YOUR NAME] to address the financial challenges encountered as a result of unforeseen circumstances.
RECITAL 2: [CREDITOR'S NAME] has been a trusted financial partner of [YOUR NAME] for [NUMBER OF YEARS], and [YOUR NAME] values the longstanding relationship.
VI. Settlement Terms
SETTLEMENT TERM 1: [YOUR NAME] acknowledges the debt owed to [CREDITOR'S NAME] and expresses a genuine desire to reach a fair and reasonable settlement.
SETTLEMENT TERM 2: In proposing the settlement terms, [YOUR NAME] aims to find a mutually beneficial solution that alleviates financial strain while honoring the commitment to repay the debt.
VII. Miscellaneous Provisions
MISCELLANEOUS PROVISION 1: All communications related to this settlement proposal shall be conducted in good faith and with full transparency between [YOUR NAME] and [CREDITOR'S NAME].
MISCELLANEOUS PROVISION 2: This settlement proposal does not waive any rights or remedies available to either party under applicable laws or agreements.
VIII. Signatures
This hardship letter, along with the proposed settlement terms, is executed by [YOUR NAME] on [DATE]. By signing below, [YOUR NAME] acknowledges the accuracy and sincerity of the information provided herein.
[SIGNATURE]
[YOUR NAME]
[DATE]
[SIGNATURE]
[CREDITOR'S NAME]
[DATE]
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