Free Payment Plan Letter Template (Download a Court-Ready PDF)

If you need breathing room on a balance, a payment plan letter can open the door to negotiations. CourtPDF’s Payment Plan Letter tool structures your proposal, keeps the tone professional, and exports a polished PDF with signature and contact information.

When to use this letter

Send a payment plan letter when you owe a fixed amount but can pay over time. It works for landlord debts, medical bills, settlement negotiations, and even informal agreements with family members—any situation where you want a written record.

Set the right tone and structure

Stay respectful and clear. Open with the balance owed, acknowledge responsibility, and propose a realistic schedule. Use short paragraphs so the reader can skim quickly.

Sample language blocks

• Hardship: “Due to reduced hours, I cannot pay the balance in one lump sum. I can, however, commit to $300 on the 1st and 15th of each month.”
• Request: “Please confirm that no late fees or interest will accrue while I make timely payments under this plan.”
• Proof: “I’ve attached proof of income and recent bank statements showing my payment capacity.”

Attach supporting proof

Reinforce credibility with ProofOfIncome, bank summaries, or receipts. Organized attachments show you’re serious and help creditors approve your request faster.

Related tools

• Draft agreement terms with PaymentPlanAgreement if your proposal is accepted.
• Use DemandLetter for more formal requests or leverage.
• Provide proof of ability to pay with BankSummaryLedger or ReceiptCourt.