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I am requesting that you consider forgiving or releasing the debt entirely. If this is not possible, I would be grateful for your consideration of a reduced settlement amount. I believe that this approach would allow me to regain my financial footing and move forward with my life.
A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity. All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.
The Bankruptcy Proof of Claim Form (Official Form 410) is used for filing a claim for payment in a bankruptcy case. This form must be completed with accurate information regarding the creditor and the claim amount. Ensure all sensitive information is redacted to protect privacy.
Steps in Writing the Letter Start by including the debtors name and contact information at the top of the letter. Add the date. Address the letter to the creditor. In the letters body, state that the debtor has filed for bankruptcy.
As a result, concealing assets, making fraudulent transfers within one year of filing, destroying financial records or lying on bankruptcy forms will typically disqualify your case and could potentially result in criminal charges.
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If you file for personal bankruptcy, you generally have two options: Chapter 7 or Chapter 13. A Chapter 7 bankruptcy will sell off many of your assets to pay your creditors. In a Chapter 13 bankruptcy, you keep the assets but must repay your debts over a specified period.

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