Reported false income on credit card app is this a problem?

I am not a lawyer nor have I done bankruptcy, but from the autside my guess would be it could be considered fraud as it was a lie told in order to fraudulantly obtain financial gain, but I guess it would depend if the credit card company would bother prosecuting you for lying? I wonder if there has ever been a case of a credit card company or other lender prosecuting for that? Good question, I'll be watching this thread for the answer just out of curiosity!

cannot real answer this question but I guess it could be seen as fraud and debt excluded from BK had to be paid outside of BK plan, same as debt aquired after you contacted BK attorney.
I have little bit different story but in some way similar, I'm trying to settle my debts and one particular creditor does not want to do this becasue in their eyes my debts does not qualify for settlement, here how they explain this.
I have had this line of credit for 4 years many times it was max out and repay to Zero, then max out again there was a time I was repaying this line of credit with another card for balance transfer to get better rate, so about 5 months before I stop paying all cards I did one of this balance transfers to get intrudoctory low rate then once tarnsfer was finalized I did use founds from just paid off line of credit again.
Soon I ended up not being able to pay even min
I can understand if I would get new card advance it or max out this card in month and stop paying that;s fraud because this looks like I want to take this money and never was going to pay back, but this is not the case I had this card for 4 years but they do not want to listen all they look at is that this line of credit was paid off 10 months ago and then max out. All they look at is 5 months time fram from when it was zero to 5 months later when I stop paying.
This is very conveniance fro them they do not care I was paying 28% interest for 3,5 year
can they win in the court with such agrument?

"I'm trying to settle my debts"

how are you trying to settle them? Bankruptcy or something else?

Under certain conditions, it can be a federal crime to lie on a credit application:
[quote]TITLE 18 > PART I > CHAPTER 47 > ?? 1014
Whoever knowingly makes any false statement or report ... for the purpose of influencing in any way the action of ... an insured State-chartered credit union, any institution the accounts of which are insured by the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, any Federal home loan bank, the Federal Housing Finance Board, the Federal Deposit Insurance Corporation ... upon any application, advance, discount, purchase, purchase agreement, repurchase agreement, commitment, or loan, or any change or extension of any of the same, by renewal, deferment of action or otherwise, or the acceptance, release, or substitution of security therefor, shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both. [/quote]
Basically meaning, if your credit card issuer is a bank that is backed by the government, then they can file criminal charges.

If they don't pursue criminal charges, they can fight to keep your debt from being discharged in the bankruptcy:
[quote]?? 523. Exceptions to discharge
(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt???
(2) for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by???
(A) false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor???s or an insider???s financial condition;
(B) use of a statement in writing???
(i) that is materially false; (ii) respecting the debtor???s or an insider???s financial condition;
(iii) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and
(iv) that the debtor caused to be made or published with intent to deceive; or [/quote]

My company just had a guy that took out a loan, never made a payment, and then filed BK. We compared the income and expenses he listed on his credit application to those he listed on his bankruptcy petition, and it turned out he lied to us about his monthly rent. We filed an adversary proceeding in the bankruptcy court on the grounds I listed above, and the judge ordered him to pay us back even though he went bankrupt. Court costs and attorney fees for us to go fight his bankruptcy added about $1000 to his balance.

plus he was stuck paying the loan, correct?

Yes, basically we got a judgment from the BK judge that excluded our debt from being discharged. The judge ordered him to pay us $X.xx per month (I probably shouldn't give actual account info) until paid. If a payment is missed, then we would register that judgment in the county court and go in for a wage garnishment.

I think I remember reading some where on here that it is the credit card companie's "due diligence" to verify income??? Can't remember exactly and that may have just been an individual opinion.

In mortgage transactions, Regulation Z (Federal Truth in Lending Act) does require the lender to document and verify a consumers ability to repay. This documentation requirement only pertains to mortgages.

In IL, there used to be a law that considered "lending without due regard to ability to repay" to be a misdemeanor. But that law has since been repealed.

Some state laws pertaining to PDLs require a PDL to verify a consumer's income before advancing the customer.

So far I've never seen any federal or state law that requires credit cards to actually verify income -- and I've never had to send a copy of my paystub into a credit card before they approve the account.

O.K., surely some one here has been through this actual scenario.?? Was it a factor for you? Has this actually come up for anyone??? If so, what happened?

I don't think I have much advice on this one.?? I just know there are a ton of folks that lie on the credit card applications because they rarely verify them.
I'm thinking the worst thing that could happen is it would be kept out of bankruptcy.
??

that is how financial problems begin. If you "exaggerrate" your income to get qualified, or higher credit then it could very quickly lead to having more debt than you canafford to repay. Depending on what exactly you were dishonest about or your line of work(i.e.law enforcement,etc.) that could be discovered in a detailed backround investigation would determine if there could be any future problems. If none of this applies then just don't "exaggerrate" income again and you should be fine.

that is how financial problems begin. If you "exaggerrate" your income to get qualified, or higher credit then it could very quickly lead to having more debt than you canafford to repay. Depending on what exactly you were dishonest about or your line of work(i.e.law enforcement,etc.) that could be discovered in a detailed backround investigation would determine if there could be any future problems. If none of this applies then just don't "exaggerrate" income again and you should be fine.

I would think most people have increased their income on credit card applications. Do creditors really pursue this? Anyone have any real-life experience on this issue? Did you increase your income and still get the debt discharged?

No one in their right mind would answer this in the affirmative, I would think...

Actually, I have usually reported my income at a slightly more conservative level than what it was.