Mortgage LOX Maker: Bankruptcy Explanation Letter
Make your own Letter of Explanation (LOX) for bankruptcy on your credit report. Create a bankruptcy explanation letter for mortgage applications. Generate instant PDFs for your lender with digital signature capture.
Your Information
Letter Preview
I, {{borrowerName}}, provide the following explanation regarding my {{bankruptcyType}} bankruptcy filed on {{filingDate}}.
What caused the bankruptcy:
{{bankruptcyReason}} - {{bankruptcyExplanation}}
How I have rebuilt my credit:
Since the bankruptcy, I have taken the following steps to re-establish credit:
{{#each improvements}}
- {{this}}
{{/each}}
Optional supporting documentation included:
{{#each supportingDocuments}}
- {{this}}
{{/each}}
Certification:
I certify that the information above is true and correct. I am committed to maintaining responsible financial practices going forward.
{{borrowerName}}
{{borrowerEmail}}
{{borrowerPhone}}
Borrower's Signature: {{signature:borrowerSignature}}
Date: {{signatureDate}}
Tips for Success
- Keep explanations brief and factual
- Attach supporting documentation when possible
- Review all information before signing
- Submit within 48 hours of your loan officer's request
Important Reminders
- All information must be truthful and accurate
- False statements may result in loan denial
- Keep copies for your records
- Contact your loan officer with questions
When To Use A Bankruptcy Explanation Letter
Chapter 7 Bankruptcy
You filed Chapter 7 bankruptcy to discharge unsecured debts and need to explain the circumstances.
Chapter 13 Bankruptcy
You completed a Chapter 13 repayment plan and need to document your financial recovery.
Medical Bankruptcy
Overwhelming medical bills forced you to file for bankruptcy protection.
Job Loss Bankruptcy
Loss of employment led to inability to pay debts and bankruptcy filing.
Divorce-Related Bankruptcy
Divorce proceedings and related financial strain resulted in bankruptcy filing.
Common Scenarios Requiring Multiple Letters
Bankruptcy + Credit Recovery:
- Use this bankruptcy letter to explain the bankruptcy circumstances
- Use our foreclosure/short sale letter if property loss led to bankruptcy
Bankruptcy + Employment Gap:
- Use this bankruptcy letter to explain the bankruptcy
- Use our pending litigation letter if legal issues contributed to bankruptcy
How to Use This Bankruptcy Explanation Letter Generator
Gather Your Information
Collect all necessary details and supporting documentation before starting the generator.
Complete the Form
Fill out all required fields in the generator. The preview will update in real-time as you type.
Review and Sign
Review your letter for accuracy, add your digital signature, and download the PDF.
Submit to Your Lender
Send the completed letter to your loan officer along with any supporting documentation.
Supporting Documents Your Lender May Need
| Document | What It Tells Your Lender |
|---|---|
| Bankruptcy discharge papers | Confirms the bankruptcy is complete and debts are discharged |
| Credit counseling certificates | Shows you completed required financial education |
| Current credit report showing improvement | Demonstrates credit recovery since bankruptcy |
| Employment verification letter | Confirms stable income and employment post-bankruptcy |
| Bank statements showing financial stability | Proves you can manage finances responsibly now |
Frequently Asked Questions
How long after bankruptcy can I apply for a mortgage?
Waiting periods vary by loan type: FHA (2 years), VA (2 years), Conventional (4-7 years), depending on circumstances.
Is a bankruptcy explanation letter always required?
Most lenders require this letter (sometimes called a hardship letter or letter to the lender) regardless of when your bankruptcy occurred, even if it was several years ago.
Will bankruptcy automatically disqualify me for a mortgage?
No, bankruptcy won't automatically disqualify you. You can get approved if you meet the waiting period and demonstrate financial recovery.
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