Letters of Cancellation

Debt Cancellation Letter

Write this type of letter for any situation in which you are communicating information regarding a debt cancellation. You will likely need to modify this letter sample at least somewhat so that it most closely matches what you want to communicate. Include in your letter any pertinent details.

[Your letterhead, if desired; if not, your return address]

[Date of letter-month, day, and year]

[Recipient's first and last names]
[Company name]
[Street or P.O. box address]
[City, State ZIP code]

Dear [recipient's name]:

We are writing to notify you that we have received and reviewed your request for a debt cancellation of your medical bill with our office. After careful consideration, we have decided to cancel $300 out of the $500 that you owe our office. Thus, your balance is now $200.

Please call our billing office to make this $200 payment or to make arrangements to pay this balance as soon as possible. We will be happy to work out a payment plan with you if you are unable to pay the $200 amount in full at this time. Thank you for submitting your request for a debt cancellation and for your prompt attention to the $200 balance due.