Judgement Proof Debt Settlement Letter

Sometimes even after explaining to your creditors that you have lost your source of income (your job) and have no personal assets, they will still keep harassing and calling you to recover their debts. Some creditors will ask you to borrow money from your friends/family in order to pay them down, others will ask you to take out more credit card debt (which will involve paying interest payments and juggle you down into more debt). If you are in such a situation, use this Judgement Proof letter to inform the creditor that you have no assets and no source of income, and with the Fair Debt Collection Practices Act, the creditor must stop harassing you.

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Today's Date (dd-mm-yyyy)

Your Name
Your Address

Debt Collector's Name
Debt Collector's Address

RE: Collection Letter, Date (dd-mm-yyyy), Account #: (####)

Mr/Mrs. Debt Collector,

I am writing this letter in response to your (Letter or Phone Call) dated (dd-mm-yyyy) regarding collection of the above referenced debt. I want to inform you that I have lost my sole source of income (or have incurred permanent / temporary disability) and am unable to make payments towards the above referenced debt.

Since i have lost my source of income, I also want to inform you that I own no personal valuable assets which can be liquidated to pay off the above referenced debt. I therefore want to save us both a great deal of valuable time, energy and money and ask you to stop calling me. According to the Fair Debt Collection Practices Act, [15 USC 1692c] Section 805(c): CEASING COMMUNICATION:, you must STOP all communication with me after having received this letter.

This letter is my request to you to stop calling me! You can only call me under 2 circumstances now:

  • You're ending any more collection efforts of debt owed
  • You're taking a specific course of action against me

I am not a chicken to run away from my debts. This is why I am contacting you with this letter. If my financial situation ever improves again, I would be more than willing to resume making payments on the above mentioned debt.

Thank you for your understanding.

(Your Signature)
(Your Printed Name)

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