I Cannot Afford to Repay my Debt – Template Letter

Reviewed by

Chris Andersen

Reviewed by Chris Andersen

Chris became an Insolvency Practitioner in 2014 and is currently regulated by the IPA.

He is experienced in contentious insolvency with excellent analytical skills and strong knowledge of both general and technical insolvency matters.

Meet Our Experts

15th April 2024

Use this letter to inform a creditor that you cannot afford to repay your debt.

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.

No money to pay creditors – letter

Dear Sir/Madam

Account No: {{Your account or reference number*}}

We are writing this letter to inform you that the current economic situation has caused serious financial challenges for our business. We are currently working out long-term solutions to manage our debts and taking professional advice.

Because of this hardship, we would like to request you hold action on this account.

We also request that you withhold any interest on our debt for the next {{_*}} days.

Thank you for your understanding, and I hope to hear from you soon.

Yours faithfully

{{Include your full name*}}