I think I may have committed fraud...

[suneray]

Hello everyone. I have major credit card (and other) debt from when I was in my first years of college and am planning to file soon. I came across a few people saying that misrepresenting your income on a credit card application can be considered fraud in court.

It was a long time ago, but I think on two of my credit cards I said my income was higher than it actually was. I was in a really tight spot and saw it as my only way out... boy was I wrong. I partially inflated my income based on my previous years tax returns when I was working full time, and because I received student loans partially for living expenses. I'm sure that is no excuse. It was back in about 2004 or 2005, so I am not completely certain. They are now both owned by collection agencies and one is judgment. I am almost 100% certain I made at least a few months payments on both of them. So I am wondering if this will be considered fraud and what will likely happen in BK court?

Thank you

[spanky]

What kind of balances do you owe on them?

[suneray]

The judgment one is currently for a little over $6000 and the other is a little over $2000.

[backtoschool]

Have you made any "luxury" purchases on them recently, or taken large cash advances on them recently?

It is very difficult for the creditor to prove fraud. It also costs a creditor around $5,000 to file an AP against you, which is a separate proceeding from your bankruptcy. The $2,000 card will most likely not go to AP for that reason.

[suneray]

Have you made any "luxury" purchases on them recently, or taken large cash advances on them recently?

It is very difficult for the creditor to prove fraud. It also costs a creditor around $5,000 to file an AP against you, which is a separate proceeding from your bankruptcy. The $2,000 card will most likely not go to AP for that reason.

No, I haven't used them in over 3-4 years...

[TEW]

Don't worry about it.
They aren't going to look at your credit app

[JackBondLove]

From what I've read, fraud for income stating purposes is only found for cases in which the creditor asked for documentation, and the that documentation was fraudulent (e.g., making up a fake check stub or a fake income tax return, etc.) Otherwise any stated income is a "guess" or a "hope". This even covers applications in which there is a signature.

[music12]

i don't think it's a big deal. the amounts are small and nobody is going to dig up old applications and research your income that long ago for 6000 or 2000 bucks.

[aces67]

I wouldn't worry too much about it. My parents discharged almost 40K in cc debt and misrepresented their income on all there cc apps. They had no problems.

[Pizza]

Hello everyone. I have major credit card (and other) debt from when I was in my first years of college and am planning to file soon. I came across a few people saying that misrepresenting your income on a credit card application can be considered fraud in court.

It was a long time ago, but I think on two of my credit cards I said my income was higher than it actually was. I was in a really tight spot and saw it as my only way out... boy was I wrong. I partially inflated my income based on my previous years tax returns when I was working full time, and because I received student loans partially for living expenses. I'm sure that is no excuse. It was back in about 2004 or 2005, so I am not completely certain. They are now both owned by collection agencies and one is judgment. I am almost 100% certain I made at least a few months payments on both of them. So I am wondering if this will be considered fraud and what will likely happen in BK court?

Thank you

Enough time has elapsed to make it a non-issue unless the income was VASTLY overstated. Credit card companies don't have a strong tendency to fight, but I would take this as a lesson in life not to lie (or 'inflate' income) on applications. Had this been more recent, you could be in heaps of trouble.

Don't sweat it now, though. Keep the skeletons in the closet and perhaps they will be buried soon.

[backtoschool]

No, I haven't used them in over 3-4 years...

I don't think you will have any problem with your creditors filing an AP if you file for bankruptcy. I do not see a case of fraud here.

[Flamingo]

To be honest with you as to your initial question, yes you did commit fraud when you signed for the credit cards as you lied on your application and there is verbiage on that contract somewhere that states what can be done if you misrepresented any information on your application; however, at this point in time, and as the others have stated, I wouldn't worry to much about it. Just remember the feelings you are having now in case you want to misrepresent your income again in the future and what can come out of it - always read the fine print.

[ROB37LAW]

It's a non-issue. Don't worry about it. If cc companies cared about your income, you would be required to prove it at the time of application. They care about your credit score, that's it. Income is not consistant. People lose jobs after being approved. The cc companies couldn't care less how much money you make. If you can't pay, they go for a judgement against your salary. You're worrying for nothing.

[suneray]

Thanks everyone. I didn't vastly overstate my income (by dollar amount especially). I think I am just worrying about and thinking of anything that could go badly now that I am about to file. And I definitely won't overstate my income in the future. Thanks again.

[Flamingo]

It's a non-issue. Don't worry about it. If cc companies cared about your income, you would be required to prove it at the time of application. They care about your credit score, that's it. Income is not consistant. People lose jobs after being approved. The cc companies couldn't care less how much money you make. If you can't pay, they go for a judgement against your salary. You're worrying for nothing.

There are many lenders that do call employers to verify the job and income of an applicant. I've actually answered calls coming into my boss from lenders looking to verify my own employment/salary in the past. If they find you are lying, you won't get the credit/loan. Never treat lying on any application, be it credit or employment, as something minor because one never knows when it can come out of nowhere and bite one in the behind. I've seen people fired after the fact for adding degrees to their resume to colleges they never attended...