With an economy that continues to spur downward, many people are looking for ways to alleviate some of their debts by asking for forgiveness. This is most commonly seen in real estates where the property value has depreciated to the point where the mortgage is more than the value. In some cases, banks will forgive the borrower the difference in a transaction called a short-sale. If you have experienced serious financial issues, you can also attempt to ask other debtors for forgiveness such as credit cards, personal loans and car loans.
Gather all the paperwork you can find or think of that will help show your financial situation.
Find old pay stubs, original loan documents or unemployment payments. Use credit card statements, your mortgage payment or car payment history to prove you have been a trustworthy borrower but have hit unexpected circumstances.
Use other documents such as foreclosure notices or lack of payments on credit cards to prove your dire situation. Use as much paperwork as you can find to show your debtors the situation you're in.
Contact a Lawyer
Research and talk to friends and family to find a trusted lawyer that can properly represent you in your settlement.
Contact a few lawyers that have been recommended to you and set up a free consultation with him or her. Ask each of them the same questions that you think of before hand to assess his or her potential.
Decide with lawyer you feel the most comfortable with and proceed to hire him or her to represent you.
Contact Your Creditors
Show your lawyers the documentation you have gathered beforehand.
Write a formal letter explaining why you're in the current financial situation you're in. Talk about the job loss, divorce or other tragic life event that caused the financial crisis. Towards the end of the letter, ask for forgiveness or settlement of your debts. Include your lawyers name and contact number in the letter and ask the debtor to correspond directly with him or her.
Give the letter to your lawyer and have him or her read over it to critique it. Make any modifications to the letter that are needed and then send it off to your creditors.