I was young and very much uninformed about credit when I got my first credit card about six years ago. When my first credit card company asked me what the total annual household income was they told me to include everyone in the house. Which I continued doing until I went to college and had a business course on bankrupcy. Would this be considered fraud?
2006-11-21 09:43:09 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Fraud on your part, or theirs? Your response is simply that the credit card company told you what consitituted "income." The bankruptcy court is likely far more interested in what your CURRENT ability to pay your debts is, than it is what you put on an application six years ago.
Sounds like a question for your lawyer (you do have one, right?) just to make sure, though.
2006-11-21 09:50:49 · answer #1 · answered by Dimwit D 2 · 0⤊ 0⤋
Under Section 523 of the Bankruptcy Code, a debtor can objection to your discharge if you borrowed the money under "false pretenses, a false representation, or actual fraud. . ." The fraud can be based on a statement in writing that is (1) that is materially false; (2) respecting the debtor's condition; (3) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and (4) that the debtor caused to be made or published with intent to deceive.
If you did not have the intent to deceive, then you may be in the clear and the creditor has a very limited time after you file bankruptcy to file the proper objection with the bankruptcy court to try and stop your discharge. I've been handling bankruptcy matters for 12 years or so and I've only seen a creditor do this one time. You should talk to a local bankruptcy attorney, but what you describe sounds pretty innocent to me.
2006-11-25 09:48:32 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
$120,000? Wow. I don't know what your income is, but that seems insurmountable. I do recommend filing for bankruptcy. It will ease your sanity and keep collectors off your back. Your credit will be messed up for 7 years, but I still says it's worth it. Just stay disciplined from that point forward. But also, it's not like you won't be able to get ANY credit for 7 years. Your credit score will gradually move up as time passes, so your situation will improve as time passes. You'll have to pay higher interest rates or put down deposits on some stuff, but you will be able to get some credit.
2016-05-22 10:08:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋