The letter of intent allows for all facts and figures to be verified so that the buyer understands exactly what he or she is getting in the property. If the buyer finds something that he or she can not accept, or something not originally expected, he or she can back out without any recourse or punishment.
Although it is not a legally binding document, it is related to legal actions that will take place in the near future. Letters of intent related to bankruptcy are required from those who choose to file. For many individuals who are facing financial hardships, bankruptcy is the best way to overcome these difficulties and make a fresh start with their finances.