How to Write an Insolvent Letter to Debt Collectors

People often die while in debt. Death does not automatically eliminate the balances a deceased person has accrued. Creditors and debt collectors frequently approach those associated with the deceased's estate for payment. Those associated with the estate do not necessarily have to pay these balances, depending on their relationship with the deceased and whether the debts are joint debts. If a collector tries to collect from an estate that doesn't have enough money to cover the debt, you may have to write a letter telling the collector the estate is insolvent.

Instructions

1

Type your full name, left justified. Type your contact information, including your address, phone number, fax and email underneath your name, using one line per data set except for the address.

2

Skip two lines. Write "DATE:" followed by the current date. Skip another two lines and write "RE: Notice of Insolvency." Use double-line spacing once more and type your formal salutation followed by a colon.

3

Skip two lines and begin your first paragraph. Introduce yourself as a representative for the person who has died, citing the deceased's full name, address, date of death and the number and outstanding balance associated with the collection account. State you have included a copy of the deceased's death certificate in the letter.

4

Skip two lines and begin your second paragraph. Tell the debt collector that the estate appears to be insolvent. Cite any information you can to verify the insolvency, such as a specific court case number or a date when the deceased filed bankruptcy. Indicate that, due to the insolvency, you cannot meet the collector's demand for payment. Ask them outright but politely to consider writing off the outstanding balance.

5

Skip two lines to begin your third and final paragraph. Tell the collector how to contact you with questions or concerns. Thank the recipient for his time and consideration for your write-off request.

6

Skip two lines and close the letter with a closing phrase of your choice, such as "Sincerely" followed by a comma. Skip four lines and type your full name. Skip another two lines and write "Enclosure: (1) copy of Certificate of Death for [name of deceased]."