No money to pay creditors - letter
You can use this letter when you have no money available to offer to your non-priority creditors. You can use the Budgeting tool to work out your budget and to see whether you have money available to pay your non priority creditors.
This template is to be used for guidance and may not suit your specific situation. If you require more detailed advice and guidance, you can get more help.
If you need more help on using this tool, or you want to read about circumstances when you might use it, see Guidelines for using the letter templates.
Check if your creditor can still take action against you
Your creditors have a limited time to take you to court to repay a debt. For most debts, the time limit is 6 years. The time limit restarts if you write to your creditor or make a payment. If it’s a joint debt, this includes if the other person makes a payment.
If you haven’t got court papers after 6 years, your debt becomes ‘statute barred’ - this means your creditor can’t take court action to get their money back.
Don’t use this letter if:
it’s been over 6 years, because they might not be able to force you to pay
it will soon be 6 years, because contacting them might restart the time limit
Check if the time limit has passed or will pass soon. If you’re not sure, talk to an adviser.
Your reference: LL/ANO/Reminder1
To whom it may concern,
Account name: Sam K Hoolin
Account number: 12345678
I am sorry that I am unable to keep up my monthly payments to your company.
I enclose a copy of my financial statement. This shows income and expenses for me. You will see from this information that I am unable to make any offer of payment at the moment.
I am making every effort to increase my income and will contact you again as soon as my financial circumstances improve.
In the meantime, it would be helpful if you could hold action on my account and agree to freeze interest and other charges to stop my debt increasing. If you are unable to agree to this, please explain your reasons.
Thank you for your help and I look forward to hearing from you.
Adolygwyd y dudalen ar 17 Mawrth 2021