[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Bank Name] [Address] [City, State, Zip Code] Subject: Explanation of Bankruptcy — Puerto Rico Dear Sir/Madam, I hope this letter finds you well. I am writing to provide a detailed explanation of my bankruptcy situation, specifically with regard to the situation in Puerto Rico. I understand the importance of transparency and accountability, and I aim to address any concerns you may have regarding my financial standing. Puerto Rico, also known as the Commonwealth of Puerto Rico, is an unincorporated territory of the United States located in the northeastern Caribbean Sea. As such, Puerto Rico is subject to U.S. federal laws, including bankruptcy laws. In recent years, Puerto Rico has faced significant economic challenges, resulting in a high debt burden. The government of Puerto Rico found itself unable to meet its financial obligations, leading to the enactment of the Puerto Rico Oversight, Management, and Economic Stability Act (PROM ESA) in 2016. This legislation established a framework to restructure Puerto Rico's debt and address its fiscal crisis. I, unfortunately, found myself caught in this economic downturn, leading to my personal bankruptcy filing. At this time, I would like to provide a brief overview of my bankruptcy case and the actions I have taken to address my financial situation. Chapter 7 Bankruptcy: I have filed for Chapter 7 bankruptcy, which is also known as "liquidation bankruptcy." This type of bankruptcy allows individuals to discharge most unsecured debts and provides relief by liquidating non-exempt assets to repay creditors. In my case, I have worked closely with my bankruptcy attorney to ensure that all necessary documents have been filed accurately and timely. Financial Hardship: The difficult economic circumstances in Puerto Rico, along with unforeseen personal challenges, have contributed to my financial hardship. These circumstances have made it nearly impossible for me to meet my financial obligations, forcing me to seek the protection and relief provided by bankruptcy laws. Repayment Intentions: While Chapter 7 bankruptcy generally involves the liquidation of assets, please be informed that my current financial standing makes it unlikely for there to be any substantial assets available for liquidation. However, I am committed to making every effort to repay my remaining debts once I regain financial stability. I am actively seeking employment opportunities and exploring avenues for income generation to rehabilitate my financial state. Credit Rebuilding: I understand the impact that bankruptcy has on one's credit score and future creditworthiness. As a responsible debtor, I have been diligently working to rebuild my credit standing. I am attending financial literacy courses and seeking consultation from credit experts to develop a comprehensive plan to responsibly manage my financial affairs in the future. I trust this letter clarifies and explains my situation in regard to bankruptcy in Puerto Rico. Furthermore, I have attached the necessary supporting documents, including my bankruptcy filing and related court orders, for your reference. Should you require any additional information or have any concerns, please do not hesitate to contact me at your convenience. Thank you for your understanding and consideration. I look forward to resolving my financial difficulties and moving forward with financial responsibility. Yours sincerely, [Your Name]
Puerto Rico Sample Letter for Explanation of Bankruptcy
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How to fill out Puerto Rico Sample Letter For Explanation Of Bankruptcy?
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FAQ
Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding.
Examples include a job loss followed by an extended period of unemployment, a business failure, a divorce, a period of disability, or a critical illness of yourself or a family member. There are others, but those are the most common. The reader should absolutely state his job loss as the reason for the bankruptcy.
How to write a letter of explanationFacts. Include all the details with correct dates and dollar amounts.Resolution. Explain how and when the situation was resolved.Acknowledge. It's important that the letter outline why the problem won't arise again. Recognize if and how you could have avoided this mistake.
When drafting a Letter of Explanation for Bankruptcy, you need to state the reason you are submitting this explanation, record the type of bankruptcy you filed for, the timeline of the bankruptcy proceedings, and a brief description of the circumstances that led to the bankruptcy.
In other words, a letter of explanation is exactly what it sounds like. The lender and their underwriter are asking the borrower to explain something. That could be a change in jobs, a gap in employment, a large deposit into their bank account, a source of self-employed income, or just about anything else.
How to write a letter of explanationThe lender's name and address.Your name and your application number.The date you're submitting the letter and expected closing date (if you know it)A short statement that helps an underwriter fully understand your situation in regards to the reason for concern.More items...?
When drafting a Letter of Explanation for Bankruptcy, you need to state the reason you are submitting this explanation, record the type of bankruptcy you filed for, the timeline of the bankruptcy proceedings, and a brief description of the circumstances that led to the bankruptcy.
The key to writing a great letter of explanation is to keep it short, simple and informative. Be clear and write with as much detail as you can since someone else will need to understand your situation. Avoid including irrelevant information or answers to questions the underwriter didn't ask.
Since Puerto Rico entered bankruptcy, its economic crisis has only been further deepened by Hurricanes Irma and Maria, a series of earthquakes and the coronavirus pandemic.
File a lawsuit for bankrupt status: Ask your lawyer to file a petition under the Provincial Insolvency Act and fight the case in court. Once you win the case, you will be deemed bankrupt and will be relieved from continuous hounding of creditors.
