Many people experience financial difficulties which leads them to seek advice from a bankruptcy attorney in Orlando. However, there are several options that they can take to resolve their money problems before filing for bankruptcy. Hardship letters are statements which are written to a creditor by a borrower to describe changes in their financial situation. Often, creditors will need a hardship letter if a borrower makes a request for an alternative payment option or for financial assistance.
This letter should give a clear explanation of the kind of assistance that the borrower needs, the causes of their financial problems and their existing financial situation which has led to their inability to pay their debts. Once the creditor has obtained a clear picture of their borrower’s financial situation, they may then approve other financial options such as a temporary forbearance or alternative payment plan.
So, how do you go about writing a hardship letter? Here is a sample to help you to draft your own.
Which Information Do I Need To Provide?
The first step when drafting your hardship letter is to ensure that all of your key details are included. Write your name, phone number and address at the head of the letter with the date written underneath. Below, supply the contact information of your creditor. Ensure that you have included their name, department, their company name, and business address. Underneath the creditor’s information, make sure that you’ve included your own account number in the subject line – preferably in bold print or in capitals so this information can be seen easily by the reader.
The First Paragraph
In your first paragraph, you need to state your intention. Here, you might be asking your creditor to review your finances for an assistance program, to postpone your payments or to determine whether you’re eligible for any other payment option. It’s important to state clearly and cordially what you want in this opening paragraph.
The Second Paragraph
In the next paragraph, you need to explain how your financial situation has changed. For example, if you’ve recently lost your job, experienced an illness or injury or found it impossible to sell your property, this is where you need to communicate it in detail. Whenever possible supply the date the event occurred as well as any details contributing to this change in your finances.
The Third Paragraph
Next, you need to write about your existing financial situation. If you have insufficient income to cover your monthly expenses, state how much income you receive each month, your expenses and debts each month and the precise amount you are in deficit every month. You should also explain any other financial details contributing to your problems such as a lack of savings or a poor credit score which means you can’t obtain additional credit. You should also state how long you believe this situation will continue and how the assistance you’ve requested could help to alleviate your monetary hardship. Ensure you avoid placing blame, making accusations, insulting the creditor or complaining in your letter. Make sure that you use a respectful tone throughout.
Ending Your Letter
You should bring the letter to a close by supplying instructions about when and how you can be contacted to discuss this matter further. Print your name and sign the letter.
By following this example, you should find it easy to draft your own hardship letter to suit your circumstances and to get the financial assistance you require from your creditors.