Salt Lake Utah Sample Letter for Application for Approval of Compromise Settlement

• Category: Letters - Legal - Settlements
• State: Multi-State
• County: Salt Lake
• Control #: US-0275LTR
• Format: Word; Rich Text

Description

Sample Letter for Application for Approval of Compromise Settlement [Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Bank/Financial Institution Name] [Address] [City, State, ZIP] Attention: [Loan/Account Officer's Name] Subject: Application for Approval of Compromise Settlement Dear [Loan/Account Officer's Name], I am writing to formally request your approval for a compromise settlement regarding my outstanding loan/account with [Bank/Financial Institution Name]. After careful consideration of my financial situation, I believe that a compromise settlement would be the most suitable solution for both parties involved. I would like to provide you with a detailed description of my circumstances and why I am seeking a compromise settlement: 1. Financial Hardship: Due to unforeseen circumstances, such as [briefly explain your financial hardship — job loss, medical issues, etc.], I have faced significant financial challenges that have made it impossible for me to continue making the full loan/account payments. 2. Current Financial Situation: I am currently facing multiple financial obligations, which include [mention your existing debts, monthly expenses, and any potential sources of additional income]. Despite my best efforts, I am unable to meet the present loan/account obligations without severe financial strain. 3. Proposal for Compromise Settlement: After thorough analysis of my financial situation, I propose a compromise settlement that would allow me to repay a portion of the outstanding principal amount, thereby reducing the burden on both parties. I am requesting a reduction in the outstanding balance by [specify the desired percentage or amount] in exchange for extinguishing the remaining unpaid debt. I would be grateful if you could consider the following terms for the proposed compromise settlement: — Reduced Outstanding Balance: I propose a reduction of [specify the desired percentage or amount] from the existing outstanding balance. This reduction would help alleviate my financial burden and assist me in moving towards financial stability. — Repayment Options: To demonstrate my commitment towards fulfilling my financial obligations, I propose two possible options for repayment: i) Lump-sum payment: I am willing to make a single lump-sum payment towards the compromised settlement amount. I have been able to source funds through [mention the source of funds] that would enable me to fulfill this settlement within [specify the timeframe]. ii) Installment Plan: If a lump-sum payment is not feasible, I request the opportunity to repay the compromised settlement amount in equal monthly installments over a mutually agreed-upon period of [mention the proposed repayment duration]. — Full and Final Settlement: Once the compromise settlement amount is paid in accordance with the agreed-upon terms, I request that the remaining unpaid debt be considered fully satisfied, and no further obligations or claims will be held against me by [Bank/Financial Institution Name]. I understand that the proposed compromise settlement implies a partial loss for the bank. However, I genuinely believe that this mutually beneficial arrangement will prove more favorable than pursuing legal actions or facing potential bankruptcy in my financial situation. Please find attached supporting documents, including income statements, bank statements, and any other relevant information to substantiate the challenges I am currently facing. I am open to discussing this matter further or providing any additional information or documentation you may require to evaluate my request. I kindly request that you give adequate consideration to my application for a compromise settlement and provide me with your decision in writing within [mention a reasonable timeframe, such as 30 days]. Furthermore, I assure you that if granted this opportunity, I will honor the agreed-upon terms promptly and responsibly. Thank you for your attention to this matter, and I look forward to your positive response. Yours sincerely, [Your Name]

[Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Bank/Financial Institution Name] [Address] [City, State, ZIP] Attention: [Loan/Account Officer's Name] Subject: Application for Approval of Compromise Settlement Dear [Loan/Account Officer's Name], I am writing to formally request your approval for a compromise settlement regarding my outstanding loan/account with [Bank/Financial Institution Name]. After careful consideration of my financial situation, I believe that a compromise settlement would be the most suitable solution for both parties involved. I would like to provide you with a detailed description of my circumstances and why I am seeking a compromise settlement: 1. Financial Hardship: Due to unforeseen circumstances, such as [briefly explain your financial hardship — job loss, medical issues, etc.], I have faced significant financial challenges that have made it impossible for me to continue making the full loan/account payments. 2. Current Financial Situation: I am currently facing multiple financial obligations, which include [mention your existing debts, monthly expenses, and any potential sources of additional income]. Despite my best efforts, I am unable to meet the present loan/account obligations without severe financial strain. 3. Proposal for Compromise Settlement: After thorough analysis of my financial situation, I propose a compromise settlement that would allow me to repay a portion of the outstanding principal amount, thereby reducing the burden on both parties. I am requesting a reduction in the outstanding balance by [specify the desired percentage or amount] in exchange for extinguishing the remaining unpaid debt. I would be grateful if you could consider the following terms for the proposed compromise settlement: — Reduced Outstanding Balance: I propose a reduction of [specify the desired percentage or amount] from the existing outstanding balance. This reduction would help alleviate my financial burden and assist me in moving towards financial stability. — Repayment Options: To demonstrate my commitment towards fulfilling my financial obligations, I propose two possible options for repayment: i) Lump-sum payment: I am willing to make a single lump-sum payment towards the compromised settlement amount. I have been able to source funds through [mention the source of funds] that would enable me to fulfill this settlement within [specify the timeframe]. ii) Installment Plan: If a lump-sum payment is not feasible, I request the opportunity to repay the compromised settlement amount in equal monthly installments over a mutually agreed-upon period of [mention the proposed repayment duration]. — Full and Final Settlement: Once the compromise settlement amount is paid in accordance with the agreed-upon terms, I request that the remaining unpaid debt be considered fully satisfied, and no further obligations or claims will be held against me by [Bank/Financial Institution Name]. I understand that the proposed compromise settlement implies a partial loss for the bank. However, I genuinely believe that this mutually beneficial arrangement will prove more favorable than pursuing legal actions or facing potential bankruptcy in my financial situation. Please find attached supporting documents, including income statements, bank statements, and any other relevant information to substantiate the challenges I am currently facing. I am open to discussing this matter further or providing any additional information or documentation you may require to evaluate my request. I kindly request that you give adequate consideration to my application for a compromise settlement and provide me with your decision in writing within [mention a reasonable timeframe, such as 30 days]. Furthermore, I assure you that if granted this opportunity, I will honor the agreed-upon terms promptly and responsibly. Thank you for your attention to this matter, and I look forward to your positive response. Yours sincerely, [Your Name]