Letter Explaining Reasons for Bankruptcy

In response to your letter regarding the reasons for my bankruptcy from which I was discharged 18 months ago, this is in regard to my recent application for a loan with your company.

Back in 2002, I suddenly found myself out of a job when the company for whom I’d been working for as a Finance Manager for 10 years, were forced to go into liquidation. All of the workforce, including myself, were given no notice that this event was about to happen and as a result of finding myself suddenly out of work and aged 42, I found it difficult to find any alternative employment which was able to offer the same high level of income I had, up until that point, been accustomed to. With a mortgage, personal loan and other financial commitments to fulfil, I was thrust into a situation whereby I was unable to meet my considerable financial obligations which escalated over the subsequent months until the point where one of my creditors issued bankruptcy proceedings against me.

Since being discharged from bankruptcy, I have obtained another senior position within the financial sector, earning a good income with a company whose reputation is solid and whose prospects appear to be one of the most stable in the financial sector. Therefore, due to the mitigating circumstances surrounding my bankruptcy and the fact that I had no control over that alongside the fact that, up until that point, I had held down a well-paid, steady job for 10 years with the same company and have now obtained another secure position, I hope that this will explain the reasons for my bankruptcy and that you will be prepared to look favourably upon my application for a loan.

I have also included supporting documents of evidence to back up the explanation contained within this letter and if you require any further clarification or information, please do not hesitate to get in touch.

Yours faithfully,

Mr Brian Swann