Over exaggerated earnings when appying for loans

debtdodgermick

Hello, having just separated from my ex, i am out of work and cannot afford to pay the joint loans that my name is party to, the trouble is when my partner applied for the loans she said i was working when i wasn't when she applied, as to bring the APR down on them (she was working), i currently am joint and sever-able to £20,000 worth of loans for which my partner was the one who applied and is the main signer to them but i am also named on them, i did sign the credit agreements at the time along with her, i know many do exaggerate their earnings to bring down the APR on a loan but will this affect me going bankrupt do you think?
oh i almost forgot they are all unsecured loans.

sniggings

no is the short answer,if you can't pay the debt and you think BR is for you then thats all that matters,but if you lied to get a loan it could be classed as fraud and would in that case you might have a BR with more restrition placed on you or in the worst case it could be classed as criminal,but that is in the worst cases,if the creditor did not make any effort to check income etc then it would be hard for them tomake a case and if the creditor is not asking for proof of pased income then your OR is very very unlikely to even think about looking into that part of your debts.


corrected above

boltonangel

As far as I am aware if you go BR the joint debts you have with your ex will then fall onto her shoulders to repay - i'm sure someone will confirm if this is correct soon.

If you go BR i don't think the fact that you lied/exaggerated your earnings will be of much interest to the OR.

I think the major thing that the OR/Government should be concerned about is the fact that banks and financial institutions are/were providing credit without proof of income or even employment.

sniggings

yes if they are joint loans then she pays if you go BR.

maxmycardagain

The OPs actual "BR" wont exceed 12 months (if that), his OH will still be liable so the lender wont worry too much

The very worst that COULD happen is a BRU/BRO, but I would doubt they would get one.

Read few..........

http://www.insolvency.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

FraudBuster

The Fraud Act 2006.

2 Fraud by false representation
(1) A person is in breach of this section if he—
(a) dishonestly makes a false representation, and
(b) intends, by making the representation—
(i) to make a gain for himself or another, or
(ii) to cause loss to another or to expose another to a risk of loss.
(2) A representation is false if—
(a) it is untrue or misleading, and
(b) the person making it knows that it is, or might be, untrue or misleading.
(3) “Representation” means any representation as to fact or law, including a representation as to the state of mind of—
(a) the person making the representation, or
(b) any other person.
(4) A representation may be express or implied.
(5) For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).

http://www.legislation.gov.uk/acts/acts2006/ukpga_20060035_en_1

shop-to-drop

Do many people lie about their income on loan applications?

Captain_Longbeard

Do many people lie about their income on loan applications?

Sure many add a few extra bob to their earnings to either try to get a better rate, or improve chances of getting the loan you're after. Ultimately, it's on the loan co to prove you did anything wrong. If the loan co approves loans without asking to see proof (and lets be honest, how many did during the boom?), then that's just their hard luck. If you falsified any documentation to support your application, then that's a different matter, and may be case for fraud and further investigation/restrictions...

boltonangel

i never lied on my loan/credit card apps - but on one of my card apps i wrote down my income of £15k per annum and the card company had recorded it as £50k, which to me just showed that they didn't check income. i had a credit limit that matched the £50k earnings they recorded also!

there used to be a mortgage that was available with many high street lenders called the self cert mortgage in which the borrower told the lender how much they earned and no checks were carried out. Obviously if you lie on a mortgage/loan/credit card application it is fraud.

Martin1892

Many years ago, pre BR, I was called by HSBC who offered me a loan of 19K for a car.

I had never provided any proof of income. Although im sure that they had made 1000's from me in interest and charges. They knew i had a large income. Idiots. No sympathy.

I took 9k. Didnt need it. Not really. It just postponed the demise.

Am now BR. I wish took the extra 10k...

Aint life a dream?!?!?!?!?!?