Request financial assistance due to hardship: Hardship Letter
What we’ll cover
What is a Hardship Letter?
A Hardship Letter is written to your landlord, creditor, or loan provider to request financial assistance if you are going through a difficult time financially. Typical Hardship Letters outline your situation before the hardship occurred, and then describes your current financial situation and why you are unable to meet the payments due.
Some common reasons for writing a Hardship Letter include injury, loss of job, economic downturn, an illness to you or a family member, etc. This letter can help explain your situation and your proposed solution for making payments.
Get started on making your own Hardship Letter now with Rocket Lawyer – it's as easy as answering a few simple questions.
When to use a Hardship Letter:
- You are experiencing financial difficulties and want assistance in paying your bills.
- You recently lost your job or are working reduced hours and cannot make your usual payments.
- You want to request a loan modification to alter your mortgage payment terms.
Have questions about your Hardship Letter?
Whether you're preparing your Hardship Letter, reviewing one someone sent you, or just want to understand it better, here's how to get help.
- Understand what it says or review it. Use our AI legal assistant to ask questions about your Hardship Letter, understand what it says, and spot anything that may need a closer look.
- Ask an attorney a question. Connect with an attorney for legal information, with a written answer within one business day or a live consultation.
- Get advice on what to do. For privileged, confidential advice about your specific circumstances and next steps, book a Legal Advice Session with an attorney.
Sample Hardship Letter
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Dear ,
I am writing to request assistance in order to continue making payments on my
my company's revenue is because I currently make because
Based on my and expenses, I cannot make my payments. In place of my payment of per month, I ask that you alter my payments to , which will be paid .
I can be contacted at or . Thank you for your understanding and consideration.
Sincerely,
| ______________________________ | Date: ________________________ |
About Hardship Letters
Learn about how to request financial assistance due to hardship
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How to Write a Hardship Letter
Keep your Hardship Letter brief and to the point: four paragraphs are ideal, and no more than two pages.
When writing your Hardship Letter, be sure to include:
1. The names, addresses, and phone numbers of anyone named on the loan or bill.
2. The account or loan numbers and any other relevant details about the bill or loan, such as the number of months delinquent, property value, or equity.
3. The reasons for failing to keep current with your monthly payments. A financial hardship results from an involuntary reduction in income or an unavoidable increase in expenses. Some hardship reasons lenders are likely to consider:
- Mandatory reduced hours or hourly wage.
- Underemployment after loss of previous job.
- Death of a borrower.
- Decline in business earnings if self-employed.
- Permanent or short-term disability.
- Serious illness of a household member.
- Divorce.
- Unemployment.
- Major medical expenses.
- Disaster.
- Urgent property repairs.
- Increase in child care expenses.
- Mortgage loan and payment changes.
Be respectful and matter-of-fact. Don't get into any blame games or side issues.
4. An overview of your financial situation. This should include:
- Actions that you have taken to reduce expenses and increase income.
- Financial counseling or other steps that you have taken to resolve the situation.
- The amount of money that you have saved to pay toward the delinquency.
5. A brief outline of your desire to prevent default, bankruptcy, or foreclosure. Your hardship letter is a negotiation first and an explanation second. If you seek a loan modification or payment plan, list the reasons why you believe you will succeed in coming current on their payments. If you seek another solution, such as a deed in lieu of foreclosure or short sale, propose that solution here.
6. Relevant documents, including:
- Information about the monthly gross (pre-tax) income of your household.
- Your most recent income tax return.
- Information about your savings and other assets.
- Your monthly mortgage statement.
- Information about any second mortgage or home equity line of credit on your home.
- Account balances and minimum monthly payments due on your credit cards.
- Account balances and monthly payments on your other debts and personal loans.
7. Finally, be humble and appreciative. Don't get into any blame games or side issues. Be respectful and thank the lender in advance for considering your situation. And if you have any questions, don’t hesitate to ask an attorney.
Hardship Letter FAQs
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Why should I write a Hardship Letter?
Making a Hardship Letter can help you start the process of getting relief from your creditors or lenders. It can document your financial situation and help you make the case for deferred or otherwise discounted payments.
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What can be considered hardship for a Hardship Letter?
Lenders are likely to consider the following:
- Mandatory reduced hours or hourly wage.
- Underemployment after loss of previous job.
- Death of a borrower.
- Decline in business earnings if self employed.
- Permanent or short term disability.
- Serious illness of a household member.
- Divorce.
- Unemployment.
- Major medical expenses.
- Disaster.
- Urgent property repairs.
- Increase in child care expenses.
- Mortgage loan and payment changes.
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What can make a lender more inclined to accept my Hardship Letter?
The more sincere and honest you are about your situation, the better. State what caused it, what you’ve done in an attempt to solve it, whether it is supposed to be short or long term. It’s also important to keep your letter concise and to include documents that support what you are saying.
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How can I send my Hardship Letter to a lender?
Sending your letter via priority mail can help you track that it has been delivered successfully. You may also consider checking with your lender or creditor, in case they have a different process to follow for requesting hardship relief.
