Over stating income on applications

[DYLAN150]

Just wondering how often people over stating their income( credit card applications) come's up when filing for bankruptcy?

[AngelinaCatHub]

Just wondering how often people over stating their income( credit card applications) come's up when filing for bankruptcy?

Are you taking a poll? That would be hard to guess. Besides if not illegal, not moral. BTW, after discharge, what is a credit card? 'Hub

[BKman]

I would say that almost everyone pushes the numbers up. The CC company would have to have your application on file. Most don't save that after they put in your information.

[DYLAN150]

Are you taking a poll? No I am not. I was wondering how long the credit card companies keep the application and what if it's done on line.
just wondering if this has happen to anyone on this forum that all.

[Faust]

I doubt it is ever an issue the cc's. It is their own fault if they don't take the steps to verify income.

[Flamingo]

When you provide income figures on an application you also have to provide the name and phone number of your employer. If they call and check and your figures are upped several thousand dollars, your application ends up in the round file.

[Intoodeep80]

BTW, after discharge, what is a credit card? 'Hub

A very helpful tool that, when used responsibly, anybody with half a brain uses to rebuild their credit post discharge.

[forgotten]

A very helpful tool that, when used responsibly, anybody with half a brain uses to rebuild their credit post discharge.

Very true statement. Fortunately I have a whole brain and not just a half of one so I have no intention of trying to get credit cards post discharge.

I knew how to play the system, the right people to talk to at the bank, and the right things to say. It got me $320k in unsecured debt, $600k in secured debt, and I still had another $50k available credit. I was barely under the Chapter 13 debt limit!

I'm done with that. I have a nice house that i'm happy in and instead of a car payment how about I just go ahead and save up and buy the car instead of taking on debt for it?

I have no interest in future debt and I believe my life will be much less stressful as a result.

[Intoodeep80]

Very true statement. Fortunately I have a whole brain and not just a half of one so I have no intention of trying to get credit cards post discharge.

I knew how to play the system, the right people to talk to at the bank, and the right things to say. It got me $320k in unsecured debt, $600k in secured debt, and I still had another $50k available credit. I was barely under the Chapter 13 debt limit!

I'm done with that. I have a nice house that i'm happy in and instead of a car payment how about I just go ahead and save up and buy the car instead of taking on debt for it?

I have no interest in future debt and I believe my life will be much less stressful as a result.

Sorry to hear that you cannot use credit responsibly... but what about those who lost their jobs/had medical bills with no insurance and were forced into bankruptcy, that are members on this site? Who is anybody here to judge anybody else and assume their bankrupt situation was from credit card debt?

Please dont think that everybody is a member of this site because they can relate to the personal financial problems you had, that brought you here. Everybodys situation is different and a few of us who would like to rebuild our credit expeditiously, can and will use credit cards responsibly to do so.

[justbroke]

Just wondering how often people over stating their income( credit card applications) come's up when filing for bankruptcy?

This doesn't come up too often (probably way less than 0.5% of the cases) because first, the creditor would need to file a complaint (adversary proceeding/AP) and, second, be able to prove fraud. It's difficult for a creditor to say that you lied about your income, when they never performed their so-called fiduciary diligence to validate it. In order to prove this in the Bankruptcy context, they have to prove that they relied upon the information in order to extend credit to you. However, they (the creditor) also have a fiduciary responsibility to assess risk. This goes to the heart of the so-called "stated income" loans and lending practices of the early 2000s. The same lenders are now saying that people "lied" about their income on an "stated-income-only" mortgage, yet the lender never checked any part of that out. That's the lender's fault.

However, if you actually provided false documentation (a forgery or other illegitimate document) to convey your "income", then that is fraud and would be easy for the lender to prove that they relied upon that "statement". For example, if you're a self-employed person, and when the lender asked for an "audited" financial statement... you provide a financial statement that is materially incorrect. In that case, it could be easy for the lender to prove, after the fact, that they relied upon the statement because it was an audited statement, and extended credit on that basis.

Generally though, for the majority of consumers, bumping up your salary by several thousands a year is not a problem. I didn't push my numbers up, but one creditor (American Express) apparently didn't believe me and had me submit IRS Form 4506-T (Transcript Request). Once they saw what I actually made (which was significantly more than what I put on the application), they allowed me to continue charging. American express was my largest creditor at $88K used out of a $100K credit line.

[forgotten]

Everybodys situation is different and a few of us who would like to rebuild our credit expeditiously, can and will use credit cards responsibly to do so.

Don't give hostile opinions ("anybody with half a brain...") if you don't want one in return.

Who said I used credit irresponsibly? I don't recall saying how I used it, just that I had it and didn't want to get in to that position agian.

[Intoodeep80]

Don't give hostile opinions ("anybody with half a brain...") if you don't want one in return.

Who said I used credit irresponsibly? I don't recall saying how I used it, just that I had it and didn't want to get in to that position agian.

By saying "agian" [sic], I would have to surmise you are meaning "again", or in plain english, for the second time.

ANYWAYS, I have used my 3 credit cards to raise my credit score from 417 to 656 in less than a year. Im looking forward to the 700's again soon

[forgotten]

Please dont think that everybody is a member of this site because they can relate

dont? What the heck is a dont? I would have to surmise you are meaning "don't", or in plain english, do not.

I don't think we need to run around playing spell checker.

[Flamingo]

First notice/warning to the last two posters...if this continues this thread will be closed. The PM function is there for a reason. Please take your argument/disagreements there. Thank you.