If you have no spare money to pay off your debts and have no money or savings, some or all of your creditors may agree to write off your debts.
In certain circumstances it may not be financially worthwhile for creditors to pursue debt payments or administer token payments long term.
Debt write offs will usually only be considered by creditors in exceptional circumstances.
It is most likely to happen if you have low income, no spare money and your circumstances are unlikely to improve. Examples are that you may have serious long term health issues or be very elderly.
You will usually need to provide clear evidence of your situation, for example, financial statement, proof of income, medical evidence, before creditors will agree.
If a creditor agrees to a debt write off it is always best to request that they confirm this in writing.
- Relief from unwanted anxiety & stress
- No further recovery action
- Potential fresh start
- Some creditors may not agree to a write off
- Creditors may agree but not confirm in writing
- No guarantee that creditors will not pursue in the future
- Your credit file will still be affected
If you feel that asking for a debt write off may be appropriate to your situation you can do this yourself where possible however there may be creditors who may want a recognised adviser to make this request on your behalf.