Cuyahoga Ohio Sample Letter for Compromise on a Debt

• Category: Letters - Nonlegal - Collections
• State: Multi-State
• County: Cuyahoga
• Control #: US-0163LR
• Format: Word; Rich Text

Description

This form is a sample letter in Word format covering the subject matter of the title of the form. [Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Debtor's Name] [Debtor's Address] [City, State, Zip Code] Subject: Proposed Compromise on Debt for Account [Account Number/Reference Number] Dear [Debtor's Name], I hope this letter finds you well. I am writing to discuss a potential compromise regarding the outstanding balance on the aforementioned account. As a representative of [Creditor's Name], I understand your financial difficulties and would like to explore an amicable resolution that benefits both parties involved. [Creditor's Name] is aware of the challenges that individuals face in meeting their financial obligations, especially during these uncertain times. Therefore, we are open to considering a compromise that would enable you to settle this debt in an affordable manner while allowing us to recover a reasonable portion of the amount owed. After careful evaluation of your financial situation and considering the current market conditions, we propose the following compromise options: 1. Lump Sum Settlement: We offer you the possibility of settling the debt in full by paying a reduced lump sum amount. This amount will be X of the outstanding balance, which totals $[Total Outstanding Balance]. Upon receipt of payment, [Creditor's Name] agrees to consider the debt fully satisfied, and no further payments or collection efforts will be pursued. 2. Installment Plan: Alternatively, we understand that it may be more feasible for you to settle the debt through manageable installments over a specific period. As such, we propose a structured payment plan that divides the total outstanding balance into [Number of Installments] equal monthly payments of $[Amount]. Upon the successful completion of the payment plan, [Creditor's Name] will consider the debt fully satisfied. 3. Debt Restructuring: If neither of the above options is suitable, we are open to discussing a debt restructuring plan tailored to your financial capabilities. This could involve reducing the interest rate, temporarily suspending interest accrual, or extending the repayment period. Our goal is to find a mutually beneficial arrangement that helps you in making consistent payments towards resolving the debt. Kindly note that choosing any of these compromise options is voluntary, and by doing so, you acknowledge that any remaining balance after the compromise will be forgiven and not pursued by [Creditor's Name]. To initiate the compromise process, we request that you provide us with supporting financial documentation, including proof of income, expenses, and any extenuating circumstances that have contributed to your financial hardships. Alternatively, you may contact our dedicated customer service team at [Creditor's Phone number] to discuss your situation further or seek guidance in assembling the required documentation. We recognize these challenging times and believe that by working together, we can find a solution that satisfies both parties involved. We respectfully request a response to this proposal within 30 days of receiving this letter. Furthermore, we hope to achieve a mutually agreeable resolution and put this debt behind us. Thank you for your attention to this matter, and we look forward to your prompt response. Yours sincerely, [Your Name] [Your Title/Position] [Creditor's Name] [Creditor's Address] [City, State, Zip Code]

[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Debtor's Name] [Debtor's Address] [City, State, Zip Code] Subject: Proposed Compromise on Debt for Account [Account Number/Reference Number] Dear [Debtor's Name], I hope this letter finds you well. I am writing to discuss a potential compromise regarding the outstanding balance on the aforementioned account. As a representative of [Creditor's Name], I understand your financial difficulties and would like to explore an amicable resolution that benefits both parties involved. [Creditor's Name] is aware of the challenges that individuals face in meeting their financial obligations, especially during these uncertain times. Therefore, we are open to considering a compromise that would enable you to settle this debt in an affordable manner while allowing us to recover a reasonable portion of the amount owed. After careful evaluation of your financial situation and considering the current market conditions, we propose the following compromise options: 1. Lump Sum Settlement: We offer you the possibility of settling the debt in full by paying a reduced lump sum amount. This amount will be X of the outstanding balance, which totals $[Total Outstanding Balance]. Upon receipt of payment, [Creditor's Name] agrees to consider the debt fully satisfied, and no further payments or collection efforts will be pursued. 2. Installment Plan: Alternatively, we understand that it may be more feasible for you to settle the debt through manageable installments over a specific period. As such, we propose a structured payment plan that divides the total outstanding balance into [Number of Installments] equal monthly payments of $[Amount]. Upon the successful completion of the payment plan, [Creditor's Name] will consider the debt fully satisfied. 3. Debt Restructuring: If neither of the above options is suitable, we are open to discussing a debt restructuring plan tailored to your financial capabilities. This could involve reducing the interest rate, temporarily suspending interest accrual, or extending the repayment period. Our goal is to find a mutually beneficial arrangement that helps you in making consistent payments towards resolving the debt. Kindly note that choosing any of these compromise options is voluntary, and by doing so, you acknowledge that any remaining balance after the compromise will be forgiven and not pursued by [Creditor's Name]. To initiate the compromise process, we request that you provide us with supporting financial documentation, including proof of income, expenses, and any extenuating circumstances that have contributed to your financial hardships. Alternatively, you may contact our dedicated customer service team at [Creditor's Phone number] to discuss your situation further or seek guidance in assembling the required documentation. We recognize these challenging times and believe that by working together, we can find a solution that satisfies both parties involved. We respectfully request a response to this proposal within 30 days of receiving this letter. Furthermore, we hope to achieve a mutually agreeable resolution and put this debt behind us. Thank you for your attention to this matter, and we look forward to your prompt response. Yours sincerely, [Your Name] [Your Title/Position] [Creditor's Name] [Creditor's Address] [City, State, Zip Code]