A hardship letter is a written explanation of your financial difficulties and request for assistance. It is often used in financial applications, such as loan modifications or loan forbearance. Here’s a basic outline and an example:
Outline:
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- Introduction: State the purpose of the letter and your current financial situation.
- Explanation of hardship: Explain the reasons for your financial hardship, such as illness, job loss, or unexpected expenses.
- Evidence of hardship: Provide documentation or evidence to support your claims, such as medical bills, unemployment records, or financial statements.
- Request for assistance: Explain what you are asking for and how it will help you overcome your hardship.
- Conclusion: End the letter by thanking the reader for their time and consideration.
Here are examples of a hardship letter for self-employed:

Sample 1 - Hardship Letter for Self-Employed
Dear [Lender’s Name],
I am writing to request assistance in the form of a loan modification for my mortgage on [property address]. I am a self-employed individual who has recently experienced a financial hardship.
I have been self-employed for the past 10 years, but a sudden illness has prevented me from working and has drained my savings. I have been unable to make my mortgage payments on time and I am now facing the possibility of foreclosure.
I have attached medical bills and financial statements to support my claims. I am asking for a loan modification that would lower my monthly payments and give me the time I need to recover and get back on my feet.
Thank you for your time and consideration. I look forward to your response.
Best regards,
[Your Name]
Sample 2 - Hardship Letter for Self-Employed
Dear [Lender’s Name],
I hope this letter finds you well. I am writing to request assistance in the form of a loan forbearance on my small business loan. As a self-employed business owner, I have been facing financial difficulties due to the ongoing pandemic.
Due to widespread shutdowns and decreased demand, my business has been struggling to stay afloat. Despite my best efforts, I have fallen behind on my loan payments and am in need of temporary relief.
I have included financial statements and recent tax returns to demonstrate the impact the pandemic has had on my business. I am asking for a loan forbearance of 6 months, during which time I hope to recover and get back on track with my payments.
Thank you for considering my request. I appreciate your understanding and support during these challenging times.
Best regards,
[Your Name]
Frequently Asked Questions (FAQs)
1. What is a hardship letter for self-employed individuals?
Answer: A hardship letter is a written explanation of financial difficulties and request for assistance. For self-employed individuals, a hardship letter can be used to request financial assistance from lenders, such as a loan modification or forbearance, due to financial hardship caused by factors such as illness, decreased business, or unexpected expenses.
2. What should be included in a hardship letter for self-employed individuals?
Answer: A hardship letter for self-employed individuals should include the following elements:
- Introduction: State the purpose of the letter and current financial situation
- Explanation of hardship: Explain the reasons for financial hardship
- Evidence of hardship: Provide documentation or evidence to support claims
- Request for assistance: Explain what is being asked for and how it will help overcome hardship
- Conclusion: Thank the reader for their time and consideration.
3. How do I write a compelling hardship letter for self-employed individuals?
Answer: To write a compelling hardship letter, consider the following tips:
- Be concise: Keep the letter short and to the point
- Be honest: Provide a clear and honest explanation of the financial difficulties
- Provide evidence: Include relevant documentation to support claims
- Be specific: Clearly explain what assistance is being requested
- Be professional: Write the letter in a professional and respectful tone.
What should I avoid in a hardship letter for self-employed individuals?
Answer: When writing a hardship letter for self-employed individuals, it’s important to avoid the following:
- Being vague: Avoid general statements and be specific about the financial difficulties
- Being negative: Do not use a negative tone or express frustration or anger
- Being unrealistic: Request an amount or type of assistance that is reasonable and feasible
- Lying: Do not provide false information or exaggerate the situation.