Here is what I wrote. Hopefully, it can help someone.
Dear Underwriter,
I am writing to explain the bankruptcy filed and discharged July 2008. I filed bankruptcy due to extenuating financial circumstances.
In 2007 my husband was released from his position as an Auto Sales Associate. The financial strain of going from a two income home to one was a difficult process. As a result I was responsible for all household bills and was unable to fulfill the obligation to every creditor and all household bills. Creditors threatened to take me to court in order to recover the debts. If this were to happen I would not be able to pay the lease on the apartment and the entire family would have no place to stay. My daughter was born in August 2007 and I could not let this happen and filed for protection under Chapter 7.
I realize tough economic times can happen to anyone. I learned through my experience to budget and plan wisely to ensure I don’t become overextended. I have also learned to use credit wisely and only purchase what I can afford to pay off in one paycheck. This means don’t borrow without a plan to repay the debt. This is evidenced by my low credit utilization. Additionally, in 2009 I completed my Associate of Science in Business Administration. I plan to complete my Bachelor in HR Management and my MBA to make myself more marketable in this tough economic climate. I have emerged stronger, wiser and more dedicated to being fiscally responsible.
Thank you for taking the time to review my explanation. If you have any questions, please do not hesitate to contact me at XXX-XXX-XXXX.
Sincerely,
Educated consumer
