Letter bankruptcy sample 2025

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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.
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.
For instance, Chapter 7 bankruptcy covers or discharges credit card balances, medical bills, past-due rent payments, payday loans, overdue cellphone and utility bills, car loan balances, and even home mortgages in as little as four months. However, not all obligations go away in Chapter 7.
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.
One of the most impressive aspects is that bankruptcy stops most lawsuits, wage garnishments, and other collection activities and eliminates many debt types, including credit card balances, medical bills, personal loans, and more. But it doesnt stop all creditors or eliminate all obligations.
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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.

bankruptcy letter of explanation