Bankruptcy Explanation Letter [FREE Sample]

Learn how to write a bankruptcy explanation letter. Use our sample bankruptcy explanation letter as a template for your explanation letter.

Bankruptcy Explanation Letter sample

Monty Gibson
1256 Richie Drive
San Jose, CA 95128

May 03, 2021

Norman Whitman
ABC Mortgage Company
1712 Mortgage Avenue
Oakland, CA 94602

RE: Bankruptcy Explanation Letter

Dear Mr. Whitman:

I am writing to explain the circumstances of my [Chapter 7 or Chapter 13] bankruptcy filing from 2019. At the time, my wife had just been diagnosed with kidney cancer.

She had been laid off from work five months previously, which meant that our financial situation was already precarious.

Mine was the only income in the household. I was just barely keeping up with the usual bills after the loss of my wife’s income.

When she became ill, our medical expenses skyrocketed. Her need for surgery and ongoing medication were critical, but our medical insurance was not sufficient to cover all of the expenses.

My wife’s surgery was successful, but a long recovery period was required. I did the best that I could to pay as many bills as possible. 

However, it soon became clear that I would be unable to cope. This led to our bankruptcy filing in 2019.

Things have improved since then. I have received annual raises, and my wife has fully recovered from cancer and has been able to go back to work part time.

Our credit history since the bankruptcy is relatively limited, but all of our bill payments since the bankruptcy discharge have been on time.

Thank you for your consideration of my mortgage application. You may reach me at or 555-123-4567 at any time if you have questions.

Very truly yours,

Monty Gibson
List of enclosures (if any)

interesting finds