Falsified information on credit card applications

[Sh0326]

Hello all,

I am in the process of filing for Chapter 7 bankruptcy due to many mishaps in my life. As I am reviewing the paperwork it states that the bankruptcy courts may dismiss my filing if I have falsified information on my credit card applications. When opening some of my cards my significant other had put down an income of $100-120k when in actuality my income is only $55-60k. I am worried that I will be wasting my money filing. Is there a good chance that they will see this information and dismiss my case? Does anyone have any previous relatable experience going through this? Thank you for any help you may provide. This is such a stressful time for me right now, I'm just trying to figure out my options.

[justbroke]

First, welcome to BKForum. Are you filing with an attorney?

As for misrepresentation of income, it would really depend on whether the creditor suspects as much. The creditor would have to prove fraud, although they should have some responsibility to verify high income. Creditors such as American Express and Navy Federal will ask for proof of income in certain circumstances. My personal feeling is that some of the verification rests on the creditor.

The likelihood of the creditor discovering this is low and it's lower that they would do anything in the bankruptcy unless they can prove actual fraud. If the amount of credit is rather low (I'll just say $4,000 but don't ask me why), it's unlikely that the creditor would entertain pursuing the claim of fraud. If you ran up a significant amount of debt on credit cards, especially on luxury goods or cash advances, then the creditor may want to file a complaint to determine dischargeability (a "DC"). If the creditor did file a DC they'd have to prove actual fraud and it can be expensive for them to pursue that option. But if there is obvious or clear fraud, the creditor (for amounts of $4,000, but don't ask me why) should pursue the DC.

I don't have direct experience because my creditors, before granting lines over $25K, either asked for an IRS 4506-T (Request for Tax Transcript) or paystubs and W-2s. I can say, anecdotally, that it is usually not an issue except for those circumstances I just mentioned, or failure to make "any" payment after running up the debt.