Letter of explanation for BK

[Anonymous]

If you folks dont mind, can you rate and maybe correct this letter?

In the year 2004 i suffered several health issues regarding my kidney's that landed me in the hospital several times over that year. While i was finding myself in the hospital more often than i had hoped, my employer did not offer any kind of health insurance. The bills that piled up took its toll. I was barely living pay check to pay check, trying to avoid going to court over the massive debt, i attempted to arrange payments. Unfortunatly, there was a domino effect that caused me to fall behind in other bills as well. After receiving the summons of a law suit, i consulted an attorney, advised him of my current financial situation and he advised me to file for a chapter 7 bankruptcy, which was done in 2005.

My attorney even offered to take my case and accept a payment plan to take care of his fees. A year later my case was heard and the BK 7 was discharged. I have learned from my mistakes and take pride in my credit, since 2008 I have been responsible with my debts and In 2011 I paid several debts that were a result of my mistakes.

In 2007 I took a position in my current employer, which offers great pay, retirement and a fantastic health plan. I find myself controlling my financing with care. Later in 2009/early 2010 I sought out financial advice that I continue to use to this day. I budget all my bills and debts in to a weekly plan. Every week i take out my after taxes earnings, subtract what bills are due 2 weeks in advance and pay them off. My current revolving debt and other loans are all in good standing with no missed payments. The advice i received is sound and helpful, i have adhered to it for almost 2 full years, even passing it along to friends and family, helping some control their financing.

I have including the possible monthly payment for my new home loan in my 2012 assesment and i am happy to report that it fits in our budget perfectly.

Thank you for taking the time to review my explanation.

Sincerely,

[IOBA]

This is how I would write the letter.  Keeping it short, explaining the why and how, and what you have done to prevent it from happening again.

In 2004, I became very ill and had several hospital stays.  I did not have medical insurance at the time.

I tried to keep up with my regular bills, while trying to pay down the medical bills.  The medical providers did not want to set up a payment plan that extended beyond three months.  Although I tried, it was financially impossible to pay all of medical bills, each time in full, within the three month deadlines they imposed.

I finally stopped robbing Peter to pay Paul and filed for Bankruptcy in 2005.   The Bankruptcy attorney created a payment plan to allow me to pay for his service.

In 2007, I bought health insurance through my current employer.  I have not been without health insurance since.

My current budget puts aside the money for co-pays, co-insurance, and deductibles.   I have an emergency fund.

I do not expect to EVER be in the situation where I can not afford to pay my bills due to an emergency or catastrophe.

Sincerely,

xxx