Debt Written Off

LFCfan · 13 June 2018 at 1:40PM

Hi,

I was just wondering in what circumstances creditors may agree to write off some my debt?

I am in a DMP and have been for almost 2 years now. However my wife's ill health means she has to reduce hours and therefore income. I have also recently had my car written off and have to cover the shortfall on the finance v what I was paid out by insurance as I didn't have GAP insurance.

The DMP payments are unsustainable and this will be the 4th time I have had to reduce what is being paid.

I have seen some people have been successful in getting debt written off from some creditors and wondered if this is a genuine option? Even if I get 1 or 2 written off I can repay others.

National_Debtline · 13 June 2018 at 1:54PM

Hi LFCfan and welcome to MSE,

You can make a request to have the debts written off at any point, but please be aware that the creditor is more likely to consider this if you have very little or no money to pay towards the debt (and that is unlikely to improve), no assets, and potentially a health issue that may mean you are considered to be vulnerable. If the debts in the DMP are in your sole name, your wife's health may have less sway.

If you request a write off you can use our sample letter, include a budget to show how little you could pay, and a letter from a doctor/ medical professional about any health issues. Please remember that it is at the lenders discretion, but if they refuse the first request, you can try again and make a second request.

Laura
@natdebtline

LFCfan · 13 June 2018 at 2:14PM

Many thanks for your response.

I'll give it a go and see what they say, I've been able to pay up until now but its getting too much and I may have to start defaulting otherwise and file for bankruptcy.

Debt Written Off

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