A hardship letter explaining loss of income is a crucial document when seeking financial assistance, loan modifications, or negotiating debt relief. It clearly outlines your current financial difficulties due to unforeseen circumstances that have impacted your earnings. Writing a persuasive and factual letter can significantly increase your chances of receiving the support you need. This guide provides examples and key components to craft an effective hardship letter.
When composing your letter, it’s vital to be honest and transparent about the reasons behind your income loss. Common reasons include job loss, illness, disability, or unforeseen family emergencies. Clearly stating the circumstances, providing supporting documentation (if possible), and expressing your willingness to find a sustainable solution are all important aspects to consider. Remember to maintain a professional tone and express gratitude for their consideration.
23 Sample Hardship Letters for Loss of Income
Here are 23 sample hardship letters to provide inspiration and guidance. Remember to customize these samples to reflect your specific situation and include all relevant details.
Note: Replace bracketed placeholders with your information.
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Sample 1: Job Loss Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a significant financial hardship. I recently lost my job at [Company Name] on [Date of Job Loss] due to [Reason for Job Loss – e.g., company downsizing]. Prior to this, I was employed there for [Number] years.
Since my job loss, I have been actively seeking new employment. I have attached my resume and a list of jobs I have applied for. My unemployment benefits are [Amount] per month, which is insufficient to cover my essential expenses, including my [Mortgage/Rent/Loan Payment].
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume full payments once I secure new employment. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 2: Medical Emergency Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a significant financial hardship caused by unexpected medical expenses. On [Date], I was diagnosed with [Medical Condition]. This has resulted in substantial medical bills and a significant reduction in my ability to work.
I have attached copies of my medical bills and documentation from my doctor. My income has decreased by [Percentage] due to [Reason for reduced income – e.g., needing to take time off work, needing to switch to a lower-paying job].
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am working closely with my healthcare providers to manage my condition and hope to return to my previous earning capacity as soon as possible. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 3: Reduced Hours Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a significant reduction in my working hours. My employer, [Company Name], has recently implemented cost-cutting measures, resulting in my hours being reduced from [Previous Hours] to [Current Hours] per week, effective [Date].
This reduction in hours has resulted in a [Percentage] decrease in my monthly income. I am actively seeking additional part-time work to supplement my income, but finding suitable employment has been challenging.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am hopeful that my hours will be restored in the near future, or that I will find a suitable second job. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 4: Spouse’s Job Loss Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the loss of my spouse’s employment. My spouse, [Spouse’s Name], was recently laid off from [Company Name] on [Date]. This has created a significant financial strain on our household.
My spouse is actively seeking new employment, but the job market is competitive. We have attached [Spouse’s Name]’s resume and a list of jobs they have applied for. Our combined income has decreased by [Percentage] since the job loss.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. We are doing everything we can to manage our finances and find new employment for my spouse. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 5: Disability Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a disability that has impacted my ability to work. On [Date], I was diagnosed with [Disability]. This has resulted in a significant reduction in my income and increased medical expenses.
I am currently receiving disability benefits, which are [Amount] per month. This is significantly less than my previous income. I have attached documentation from my doctor and the Social Security Administration.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am exploring options for vocational rehabilitation and hope to return to work in some capacity in the future. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 6: Family Emergency Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to an unexpected family emergency that has significantly impacted my finances. On [Date], [Describe the Family Emergency – e.g., my mother suffered a stroke, my child was hospitalized]. This has resulted in substantial medical expenses and a need to take time off work to care for my family member.
I have incurred significant expenses related to [Emergency Details]. My income has decreased by [Percentage] due to [Reason for reduced income – e.g., taking unpaid leave, reducing work hours].
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am working to manage the situation and hope to return to my previous financial stability as soon as possible. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 7: Natural Disaster Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the impact of the recent [Natural Disaster – e.g., hurricane, flood, earthquake] on my home and income. The [Natural Disaster] occurred on [Date] and caused significant damage to my property and surrounding area.
As a result of the [Natural Disaster], I have incurred significant expenses for repairs and temporary housing. I have also experienced a loss of income due to [Reason for income loss – e.g., business closure, inability to get to work]. I have filed a claim with my insurance company, but the process is ongoing.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am working diligently to recover from this disaster and appreciate your understanding during this difficult time. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 8: Divorce/Separation Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the financial strain caused by my recent divorce/separation. The divorce/separation was finalized on [Date], and it has significantly impacted my financial situation.
As a result of the divorce/separation, I am now solely responsible for [Expenses – e.g., mortgage payments, child support]. My income has not changed, but my expenses have increased significantly. I have attached a copy of the divorce decree/separation agreement.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am working to adjust to my new financial situation and appreciate your understanding during this challenging time. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 9: Unpaid Leave Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a period of unpaid leave that I had to take from my job. I was required to take unpaid leave from [Start Date] to [End Date] due to [Reason for Leave – e.g., caring for a sick family member, dealing with a personal emergency].
During this period, I received no income from my employer. This has created a significant strain on my finances. I have since returned to work and am receiving my regular salary.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am committed to fulfilling my financial obligations and appreciate your understanding as I recover from this period of unpaid leave. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 10: Business Closure Hardship (Self-Employed)
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the closure of my business, [Business Name]. Due to [Reasons for Closure – e.g., economic downturn, increased competition, unforeseen circumstances], I was forced to close my business on [Date].
The closure of my business has resulted in a complete loss of income. I am actively seeking new employment opportunities and exploring options for starting a new business venture. I have attached my business closure statement and personal financial statements.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am committed to resolving this situation and appreciate your understanding during this challenging time. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 11: Increase in Living Expenses Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a significant and unexpected increase in my essential living expenses. These increases have made it difficult for me to meet my current financial obligations, including my payments on account [Your Account Number].
Specifically, I have experienced increased expenses in the following areas: [List expense increases – e.g., Healthcare costs have risen due to a change in my insurance plan, Property taxes have increased significantly, Childcare costs have doubled since enrolling my child in daycare.] These increased expenses, amounting to approximately [Dollar Amount] per month, have put a considerable strain on my budget.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I have carefully reviewed my budget and cut back on all discretionary spending. I am also actively seeking ways to increase my income, such as applying for a second job. Thank you for your understanding and consideration of my request.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 12: Loss of Overtime Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the loss of overtime hours at my current job. For the past [Number] years, I have consistently worked significant overtime hours at [Company Name]. This overtime pay constituted a substantial portion of my monthly income.
Recently, due to [Reason for Overtime Reduction – e.g., company restructuring, reduced workload, hiring of additional employees], overtime opportunities have been significantly reduced. This has resulted in a decrease of approximately [Percentage] in my monthly income.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am actively seeking ways to supplement my income, including applying for a second job and pursuing freelance opportunities. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 13: Supporting Family Member Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the financial burden of supporting a family member who is unable to support themselves. My [Relationship – e.g., parent, sibling, child] has recently experienced [Circumstance – e.g., a serious illness, job loss, disability] and is now dependent on me for financial support.
I am providing [Percentage] of their monthly living expenses, including [List expenses – e.g., rent, utilities, food, medical care]. This has significantly strained my budget and made it difficult to meet my own financial obligations.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am committed to providing for my family member during this difficult time, and I appreciate your understanding and willingness to work with me. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 14: Unexpected Legal Expenses Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to unexpected and significant legal expenses. I am currently involved in [Legal matter – e.g., a custody battle, a lawsuit, a probate case] which has incurred substantial legal fees.
These legal expenses were unforeseen and have placed a significant strain on my finances. I have already paid [Amount] in legal fees and anticipate further costs in the coming months. I have attached copies of legal bills as documentation.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am working with my attorney to minimize expenses where possible, but the legal proceedings are unavoidable. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 15: Rental Property Vacancy Hardship (Landlord)
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a prolonged vacancy in my rental property, which has significantly impacted my income. My rental property, located at [Property Address], has been vacant since [Date] due to [Reason for Vacancy – e.g., difficulty finding suitable tenants, extensive repairs needed].
I rely on rental income from this property to meet my financial obligations, including the mortgage payment. The lack of rental income has created a significant financial strain. I am actively marketing the property and making necessary repairs to attract new tenants.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to secure new tenants soon. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 16: Change in Alimony/Child Support Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to a recent and substantial change in my alimony and/or child support payments. My alimony/child support payments were [Reduced/Terminated] on [Date] due to [Reason for Change – e.g., my ex-spouse remarried, my child became emancipated, a court order modification].
This change in payments has significantly reduced my monthly income and made it difficult to meet my current financial obligations. I have attached a copy of the court order reflecting the change in payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am exploring options for increasing my income to compensate for the lost support payments. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 17: Identity Theft Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the financial hardship caused by identity theft. I recently discovered that I was a victim of identity theft on [Date]. As a result, fraudulent charges and accounts were opened in my name, and my credit score has been severely damaged.
I have reported the identity theft to the police and the Federal Trade Commission (FTC) and am working to correct my credit report. However, the process is time-consuming and has placed a significant strain on my finances.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am committed to resolving this issue and appreciate your understanding and cooperation. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 18: Seasonality of Work Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the seasonal nature of my work. I am employed as a [Your Occupation], and my income fluctuates significantly depending on the season. My peak earning season is during [Months], while my income is significantly lower during [Months].
Currently, I am experiencing a period of reduced income due to the off-season. I anticipate that my income will increase again during the upcoming peak season. I have a history of successfully managing my finances during these fluctuations.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 19: Cost of Repairs Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the unexpected cost of essential repairs to my [House or Vehicle]. I recently had to undertake essential repairs to my [House or Vehicle]. The cost of the repairs was [Amount] which has significantly impacted my finances.
Prior to this I had been managing the upkeep and payments with ease, and always on time. However, the additional cost of these essential repairs have impacted my income greatly. I am finding it difficult to stay up to date with my obligations and payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 20: Change in Tax Liability Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the unexpected cost of a change in my tax liability. Due to my change of tax bracket, this has significantly impacted my finances.
I was unaware that I was going to be taxed this highly and did not expect to have the increase in cost taken from my income as it has. The unexpected deductions have impacted my income greatly. I am finding it difficult to stay up to date with my obligations and payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 21: Increase in Insurance Premiums Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the unexpected cost of an increase in my insurance premiums. Due to some health conditions, I was required to adjust my insurance premiums, this has significantly impacted my finances.
Prior to this I had been managing the upkeep and payments with ease, and always on time. However, the additional cost of these essential premiums have impacted my income greatly. I am finding it difficult to stay up to date with my obligations and payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 22: Delay in Receiving Income Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the unexpected cost of a delay in receiving my income. Unfortunately I have experienced a delay in receiving my pay, this has significantly impacted my finances.
Despite my efforts to speed this process along, the pay has still not come through and I am still awaiting the funds to be deposited. I am finding it difficult to stay up to date with my obligations and payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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Sample 23: Fraudulent Activity Hardship
To: [Lender/Creditor Name]
From: [Your Name]
Date: [Date]
Subject: Hardship Request – Account Number: [Your Account Number]
Dear [Contact Person Name],
I am writing to request assistance due to the fraudulent activity on my account. I have unfortunately been a victim of fraud which has significantly impacted my finances.
I was unaware of the fraudulent activity, however, I reported this to all of the authorities and am awaiting the result. The additional cost of the fees have impacted my income greatly. I am finding it difficult to stay up to date with my obligations and payments.
I am requesting [Specific Request – e.g., a temporary reduction in monthly payments, a loan modification, a forbearance]. I am confident that I will be able to resume regular payments once my income increases. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Conclusion
Crafting a compelling hardship letter for loss of income requires honesty, clarity, and a focus on your willingness to resolve the situation. By using the samples provided as a guide and tailoring them to your specific circumstances, you can significantly improve your chances of receiving the financial assistance you need. Remember to provide supporting documentation whenever possible and maintain a professional and respectful tone throughout your letter.