Inability to Pay Bill 1

Sometimes circumstances present themselves that make it impossible to pay off debts according to the original agreement. Often a letter of explanation will persuade your creditors to create a new payment plan. Be sure to name the specific reason or reasons why you are unable to make payments.



1001 Any Street
AnyTown, Anystate 10001
November 4, 1998


The Bank
Atten. Loan Manager Smith
1000 Anystreet
Anytown, Anystate 12345

Dear Loan Manager Smith:

I am writing to inform you that at present my husband and I cannot pay the monthly amount required by our loan agreement. We are unable to make full payment due to the following reasons:

  1. My husband was laid off from his job two months ago and he has not been able to find another job.
  2. My daughter had to have emergency surgery after my husband lost his job and our family health care insurance coverage.

As a result of these two incidents, our household expenses have increased while our income has decreased. We can pay only $100 a month for the indefinite future. Please accept the reduced payment. I will contact the bank immediately once our financial conditions improve and we can resume making full payments.

Thank you for your understanding and help. Please write to me at the above address or call me at (303)111-1111 within twenty days to let us know if this is acceptable. If necessary, we will be happy to rewrite the terms of the loan.

Sincerely,




John Doe
loan account number: 1234567

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