s asked in Business & FinanceCredit · 5 months ago

LIED ON CREDIT CARD APPLICATION NOW FILING BANKRUPCY?

I exaggerated my yearly income by a lot and got approved for a credit cards... now I can't pay them off...will I be charged with fraud if I file bankruptcy?

12 Answers

Relevance
  • 5 months ago

    You certainly could be, yes.

  • 5 months ago

    There is no doubt it that you will be charged with credit card fraud. The banks lawyers will present your application to the court, and you will be charged with fraud

  • Who
    Lv 7
    5 months ago

    It dont matter if you go for bankruptcy or not, when the ccard companies find out Its very likely you will be charged with fraud

    (the ccard companies done need to challenge the bankruptcy unless they suspect you have "salted away" income, that you could have used to pay the ccard bills - But that NO WAY alters the fact that you supplied false information in order to get the cards and THAT is FRAUD (its obtaining money by deception) . and in THIS case its a federal offence . If they DO challenge and its discovered you DID "salt away" money - all thats gonna happen is - that money will be retrieved and your sentence will be increased (substantially)

    There is no way the ccard companies WONT file charges - cos they have no incentive not to

    (its likely they have insurance to cover fraudulent applications - and that WONT pay out if they dont file charges

    Filing charges costs them nothing- cos the evidence is easy to get- your application saying your income is one thing and a statement from your employer saying its something else)

  • nt
    Lv 6
    5 months ago

    Possibly. I did it too when I was young & dumb but I was never even late. I think the term is "bank fraud" if they can prove you lied with the intent to defraud.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 5 months ago

    Unfortunately, you brought it on yourself. If Bankruptcy is your only option then so be it

  • 5 months ago

    Maybe, maybe not, it all depends on how much you owe. Lying on an application for credit is a CRIME.

  • Eva
    Lv 4
    5 months ago

    Very possibly. Lying on any bank application is considered bank fraud.

    • John5 months agoReport

      No, it's not "considered" bank fraud. It is THE DEFINITION of bank fraud.

  • 5 months ago

    Will you? who knows. Can you? Sure can. Another option is for the credit card companies to challenge your bankruptcy based upon false information. And if you have used the cards in the last 6 - 12 months, expect your bankruptcy to be challenged and probably denied. The trustee will ask for your financial records for the past couple of years to make sure you did not run up your bills in preparation to file bankruptcy/ If you did, the judge can deny your bankruptcy or have you change it to a Chapter 13, which puts you on a budget (overseen by the trustee) and sets up a five year payment plan. You reap what you sow.

  • Tavy
    Lv 7
    5 months ago

    Don't do that until you have explored other options. You can arrange payment plans with your creditors.

  • Elaine
    Lv 7
    5 months ago

    It depends on the jurisdiction. You could be charged with fraud as you knowingly lied on your application. Before you file for bankruptcy you need to think it through. Once you file you are aware that you won't be able to get credit of any kind for several years. You may even find it difficult to get housing, purchase a car, etc. once your credit history is checked. . You would be better off going to credit counselling, which is free. Credit counselling will help you develop a plan with your creditors while still maintaining access to credit.

Still have questions? Get answers by asking now.