Hardship Letter for Loss of Income [Free Samples]

Despite your best efforts, you may run across roadblocks that prohibit you from meeting your financial obligations and other commitments. An injury, the loss of a significant source of income, or the need to make an emergency payment can all throw a wrench into your carefully planned budget.

Consider writing a hardship letter if you’re having trouble paying off your bills. These letters inform credit card companies, banks, and lenders of your financial condition and offer suggestions for how they might help you resume regular loan repayment.

Hardship letters are an important aspect of debt relief. If you owe money and need to set up a payment plan, a letter may be just what you need to persuade your creditors to cooperate with you.

Sample 1 – Hardship Letter for loss of income

Your Name
Your Address
City, State, Address

DATE

Nancy Wilson
Loan Officer
ABC Lending Institution
5457 Hayward Lane
Philadelphia, PA, 19051

RE: Loss of Income Hardship

Dear Ms. Wilson:

This letter is a formal request for modification of my mortgage. I have fallen behind in payments for the last three months because my wife, Tammy Chicago, lost her job, which reduced our total income by half. I made the last payment on DATE.

I sincerely want to keep my home and make regular payments, but, at this time, require some modification in the terms of the loan.

I request that the monthly payments be reduced and the delinquent payments be forgiven or recapitalized, so I can catch up and prevent delinquency in the future.

I would appreciate it if we could work together to find a way to normalize my mortgage payments.

I fully intend to pay my debt, but need some help until my wife finds another job and our financial situation stabilizes again. She currently has two possible job offers, and will know the results next month.

I apologize for getting behind in my payments, but, as you can see, it was out of my control.

I can be reached at 555-333-0009 or at andrew@email.com if you have any further questions. I hope we can meet soon to agree on the terms of a loan modification.

Sincerely,

Signature
Your Name

Sample 2 – Hardship Letter For Loss Of Income

Your Name
Your Address
City, State, Zip Code

DATE

Recipient’s Name
Recipient’s Address
City, State, Zip Code

RE: Loss of Income Hardship

Dear Name of Recipient,

The purpose of this letter is to formally request a settlement for the medical bills I owe your hospital.

I regret that I am unable to pay the bill in full at this time because my monthly income has been greatly reduced after the automobile accident in which I broke both of my legs.

I am requesting a payment plan of $100 per month until the time that I am able to continue working and receiving my usual salary. The rehabilitation may take from six to nine months.

At this time, my income is $ and I have a home mortgage of $ to pay. I will pay by check on the 15th of each month beginning DATE.

If this is agreeable to you, kindly send me a letter stating the repayment details as I have described.

I can be reached at 555-123-4567 or a Name@email.com, and I would be happy to talk to you and give you more details at any time.

Sincerely,

Signature
Printed Name
List of Enclosures

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