| Author |
 Topic  |
|
|
Paulo
Starting Member
1 Posts |
 Posted - 03 August 2011 : 09:52:42
|
how will lying on loan applications affect bankruptcy?
I very foolishly lied on several loan applications from 2001 - 2004, including one for £10.000, ny claimimg that I had a salaried full time job when I was, in faCT, self employed. I inflated my annual income by about £8,000. I said the loan was for private use when I was borrowing to invest in my business.I regret doing this very much but I was trying to save my business after the death of my business partner in an accident. I have been attempting to pay back 24,000 for the last 6 years since my business went bust, with very little succes. I now have a full time job and am struggling to meet repayments every month (made via Payplan). I would like to consider bankruptcy as I cant seem to make enough to clear the debt, ever. What are the likely consequences of the fraudulent loan applications on bankruptcy? |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 03 August 2011 : 19:38:06
|
well they wouldnt stop the bankruptcy happening. Without knowing all the details it is diffifult to say but the possible reprecutions are, a BRO (which extends the bankruptcy restrictions for up to 15 years) a criminal prosecution which can include prison time and or fines and it is possible for a debt incurred by fraud to be excluded (andtherefore not written off) from the bankruptcy.
They are all the worst case scenarios |
 |
|
|
Dormouse
Starting Member
7 Posts |
Posted - 05 August 2011 : 09:51:17
|
quote:
Originally posted by debtinfo
They are all the worst case scenarios
Technically yes, but considering the amounts quoted and the time frame (over 6 years ago) I would have thought quite unlikely to be investigated unless you go confessing. The last thing you should do is admit to obtaining loans by deception.
Yes admit you have loans, be honest why you had loans, why you can no longer meet the payments ...etc.
No one is going to dig out the paperwork that far back and check what your application form said and where the money went unless you give them compelling reason to do so. |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 August 2011 : 16:39:54
|
You have no idea how far back the OR will go if they suspect that something underhand has gone on.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
|
|
|
Dormouse
Starting Member
7 Posts |
Posted - 05 August 2011 : 17:39:42
|
"IF" they suspect
I've had multiple dealings with the OR and been quite surprised but what they don't do |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 August 2011 : 18:52:40
|
You can never be sure though.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 05 August 2011 : 20:51:46
|
It really isn't worth hiding anything from the OR in the hope they won't find out - you're setting yourself up for trouble.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 August 2011 : 21:01:42
|
Quite agree.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
|
|
|
Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 07 August 2011 : 13:40:43
|
Hi,
Unless things have changed dramatically since I left then anything over 3 years is considered stale, and wouldn't merit FI(Further Investigation). An examiner could recommend it, but the OR would not proceed because of the length of time that has passed.
I dealt with quite a few cases involving similar circumstances, and yes the information provided could be construed fraudulent,but it wasn't the same as say, buying a Range Rover on finance then selling after making one payment, so it's unlikely that anything will come ofit, just explain why you did it, but equally you did something by approaching Payplan, to at least pay something back to your creditors. Plus at £24,000, and in context, it's a drop in the ocean, compared to some people I dealt with who obtained hundreds of thousands in fraudulent applications.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
|
|
|
| |
Topic |
|
What are likely consequences of fraudulent applications ?
