Inability to Pay Bill 2
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 cease collection activities. Be sure to name the specific reason or reasons why you are unable to make payments.
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1001 Any Street Collections Department To Whom It May Concern: I am writing to inform you that I am unable to make payment on my account because on October 1, 1998, I was in a serious accident that left me paralyzed. While my health insurance covers my hospital bills, I have no source of income to cover daily living expenses, such as the electric bill and food. Due to my injuries and the therapy I need to recover, I cannot work sufficient hours to meet my current expenses. My only source of income is a small saving account of $5,000. I am familiar with the law and know that I am "judgment proof." I will claim all my property as exempt if I file for bankruptcy. As a result, if you sue me and obtain judgment, you could not collect any of my property. Please cease all attempts at collection. I will provide you with reasonable financial and medical information, but I must avoid stress, including high-pressure collections and lawsuits. When my situation changes, I will notify you immediately. Thank you for your understanding. Sincerely, John Doe |