misstated income on cedit card application

[brokeNconfused]

well about 13 years ago i may have misstated my income. I cant remember for sure but after going over in my head what all takes place in court i thought this one up. It was long ago and i know i thought about doing it to see if i could get the card. I had good credit already and i got it. If i go for a 13 or 7 will i end up in jail if i did this? since then i have changed jobs several times and never EVER have i been late on the card payment. I even paid it off once. Right now im at about 4k on the card and thinking of BK. any help/advice would be great.

also iknow they ask over the phone estimated income. Sometimes they even ask if there is anyother income they can consider to get the card. In the case above i was living with a family who was paying my rent and food. Could i have included their income?

[One Half Full]

Many people's income goes up and down. 13 years ago is a long time. Don't over-think it.

[Flamingo]

There is no reason to worry about the income you stated on a credit card application 13 years ago. If it was 13 months ago, it would be a different situation. Don't worry about it.

[sharksfan]

There is no reason to worry about the income you stated on a credit card application 13 years ago. If it was 13 months ago, it would be a different situation. Don't worry about it.

How serious of an issue is this? I tend to tack on another 15K-20K or so on ALL of my CC apps...

[Flamingo]

How serious of an issue is this? I tend to tack on another 15K-20K or so on ALL of my CC apps...

Read the fine print on the credit card application (that tear off section that comes with the application or is stated online if you apply online). It will explain what can occur if you apply fraudulently. I would not treat it lightly. Also, your state laws on fraud can provide some information as to this also for you.

[sharksfan]

12K-15K (out of 42K) of my unsecured debt is in question here...

In a BK filing, if AMEX (2 accounts) and Citi (1 account) object on these grounds, can I simply choose to reaffirm these debts? Or is my entire BK filing in trouble?

If I must, I can live with walking away with 12K-15K in debt... It's the house I need to get out from under!! Will the CC companys likely settle for less than the actual balances?

[Flamingo]

12K-15K (out of 42K) of my unsecured debt is in question here...

In a BK filing, if AMEX (2 accounts) and Citi (1 account) object on these grounds, can I simply choose to reaffirm these debts? Or is my entire BK filing in trouble?

If I must, I can live with walking away with 12K-15K in debt... It's the house I need to get out from under!! Will the CC companys likely settle for less than the actual balances?

Discuss with your attorney - it may or may not be an issue. What you listed as income on a credit application has nothing to do with the amount of debt you owe now - the issue would be fraud in applying for the credit, and not the amount owed. It certainly won't affect your entir BK filing. Just go over with your attorney to alleviate your fears and get it out in the open.

[HHM]

It really is rare for a credit card to cross check the credit application with the BK petition. But yes, lying on your credit app is a form of fraud (obtaining credit using false information). The only time I have seen it be an issue is if you applied for the credit within the 12 months before filing BK.

Worse case scenario, you end up having to pay some or all of that debt back. But I wouldn't worry about it.

[brokeNconfused]

well i know they ask an average monthly now. As far as my state fraud laws go it is WAY past the statute of limitations to be charged, just now sure what may happen in federal court. It was 13 years ago.

[sharksfan]

It really is rare for a credit card to cross check the credit application with the BK petition. But yes, lying on your credit app is a form of fraud (obtaining credit using false information). The only time I have seen it be an issue is if you applied for the credit within the 12 months before filing BK.

Worse case scenario, you end up having to pay some or all of that debt back. But I wouldn't worry about it.

I don't mean to threat be a thread theif!! Sorry OP!

We are talking within 6 months for my wife and I on the 3 previously stated account.

I'm starting to think we need to let things 'settle' for a few months before filing. My concern is dealing with bill collectors (namely my 2nd mortgage holder who calls me at work 1 day into my grace period).


Here is what NY law says about "FRAUDULENT CONVEYANCES" and more specifically "Conveyances by a person about to incur debts"

275. Conveyances by a person about to incur debts. Every conveyance
made and every obligation incurred without fair consideration when the
person making the conveyance or entering into the obligation intends or
believes that he will incur debts beyond his ability to pay as they
mature, is fraudulent as to both present and future creditors.

My wife and I didn't know we were insolvent until about 5 weeks ago. Our intents were to repay these debts with an anticipated large tax refund (we received a large one for 2006.... for 2007 we owe $1000 between state/federal) and my wifes yearly bonus. The bonus was received right around the time we realized we had major problems... it was used to get caught up on our bills.

[buchanj]

most credit is based on fico scores, if getting a card was based on you paycheck dont ya think they would want a copy of your pay stub? I wouldnt worry about it.

[Flamingo]

well i know they ask an average monthly now. As far as my state fraud laws go it is WAY past the statute of limitations to be charged, just now sure what may happen in federal court. It was 13 years ago.

I think your thread got entangled with Sharksfan's postings and replies...there is no need for you to worry .... only those who may have fraudulently included "additional" income in applications within the past year or so. But it goes to show everyone how something that one did so long ago will present itself at the present when it was done under false pretenses. Why take the chance and cause all that worry?

[BKFLA]

We applied for a large credit card and being that I got quartly bonuses at the job I had at the time and my husband was a retail store manager, he was entitled to large monthly bonuses if they made their goals. That would add on an additional 10-15k a year. It was anticipated income....wrong to put on our credit card application? Yes. But we did so. Hopefully it won't come back to bite us in the butt, we'll see at our 341.

[Flamingo]

Why go through the worry of knowing you are putting fraudulent information on a credit card application or other loan applications? Our HR Dept. receives calls from many loan and lender companies verifying employment and income on a daily basis. If the income you put down does not match what they are advised, the application will be denied. More and more checks are being done on financial applications moreso than ever before due to all the fraud that is rampant today. Why line oneself up for trouble/problems now or in the future? If one has to lie to obtain credit, one can't afford the credit - simple as that.

[Cali]

Why go through the worry of knowing you are putting fraudulent information on a credit card application or other loan applications? Our HR Dept. receives calls from many loan and lender companies verifying employment and income on a daily basis. If the income you put down does not match what they are advised, the application will be denied. More and more checks are being done on financial applications moreso than ever before due to all the fraud that is rampant today. Why line oneself up for trouble/problems now or in the future? If one has to lie to obtain credit, one can't afford the credit - simple as that.

ITA!