Problematic Bankruptcy [AZ]

[Galadriel]

Hi guys

I screwed up. I misrepresented my income to acquire two personal loans (Upstart and Upgrade). I was unemployed. Each loan was for ~10k

It wasn't right but I thought I would quickly find another job in the pay range I represented for my loans~50k.

I have not kept up the monthly payments since May of 2022. I have other debts I am letting go to collections too but that's not really relevant as they were definitely obtained…. honestly.
THE THING IS that I never had the intent to "defraud" my creditors. I never had a bankruptcy in mind. I just thought I would only use a small fraction of the loan, quickly get another job in the pay range of my previous one, and pay it back.
Simple.
Obviously, that's not what I did, and I never found a new job that would bail me out let alone allow me stay above the water, ran into some troubling mental health issues that are impeding my working ability, yadda yadda poor me poor me etc.

My biggest fear is that after the 341: the companies will look and see that I misrepresented my income, and then raise objections, and possibly even start litigation for fraud;
Although statistically it is quite rare for creditors to object after the burden of proof has changed to the debtor, in my case, it still feels like a big gamble.
It has been well over 90 days (7 months for Upstart, paid only 2 months, and 8 months for Upgrade, paid 5 months).

l've been poring over bankruptcy code for a bit so I know quite a bit for a layperson, and I just can't shake the feeling like I shouldn’t take this chance. I never intentionally conned anyone, just made a dumb decision.

I welcome any feedback at all because it feels good to just write this down and reach out to some people.

[justbroke]

I don't think this is an issue. Hardly any creditor goes through the process of an Adversary Proceeding for fraud because fraud is tough to prove. They also had a fiduciary responsibility to validate your income. That you actually paid on the loan for a few months may help. But I really don't see any glaring issue such as borrowing $100K when you only made $10K a year.

It is what it is at this point. Should they choose to spend upwards of $4K for an adversary proceeding (AP) to determine if you fraudulently obtained the loan, then you'd just have to pay it back. The debt would not be discharged in that scenario. I'm guessing that it's unlikely that they do file an AP, but that's just a guess. The only way to find out is to file. It's up to them to decide whether it's worth the effort trying to prove actual fraud.