Judgement-Proof Execution-Proof Letter to Creditors or Debt Collectors

This letter is your way of telling creditors or debt collectors that you do not have any income, assets, or money at all. This situation can happen if you owe money but because of some unforseen reason, you end up losing your income and you cannot afford to pay your debt. You may have attempted and tried to explain this to the creditors or debt collectors, but they totally ignore you and persist on calling you often.

You are even getting some bold debt collectors who keep suggesting that you go ahead and borrow the money from your family or friends, while other debt collectors tell you use your credit card to pay off the debt….which is definitely a big no no. So, even if creditors or debt collectors win judgement against you, they still have to go through the process of collecting…..but they will be unable to do that because you have no penny to your name. So, if you are broke, without a cent to your name, then you are protected from the execution of collecting on that judgement (aka,execution-proof).

Go ahead and copy this sample letter, then paste it in your favorite text editor or wordprocessor. You can tweak it to fit your exact situation, and then finally send the letter to debt collectors and creditors, informing them of your current financial predicament.

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Today’s Date

Your Name
Street Address
City, State, Zip

Collector’ or Creditor Name
Address
City, State, Zip

RE: Account {insert account name and/or number}

Dear Collector or Creditor,

I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) about the above referenced account. I am unable to pay on this account due to {insert reason here i.e. unemployed, disability} . This is a {permanent or temporary} situation.

I also hope to save both of us a great deal of time, energy and expense by letting you know that I have no attachable income or own any assets such as a home, car or land; essentially I have no money and can prove it! In accordance with the Fair Debt Collection Practices Act, 15 USC 1692c, 805(c):

(c) CEASING COMMUNICATION. “If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt…”

Although I agree that I owe this debt, I am unable to make any payments toward it and therefore ask that you cease further communication with me concerning this debt. I will notify you if my financial situation improves enough to allow me to begin or resume making payments. Thank you for your understanding in this matter.

Sincerely,

Your Signature above printed name
Your Printed Name

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Note** Do not forget to send your judgement-proof/execution-proof letter via “return receipt requested/certified mail”. Make sure you also make a copy and keep them for your records.