Bankruptcy - what If I was not honest on my loan application

hcg0706

I am going bankrupt. I have several personal loans. However, when I applied for some loans, I did not disclose all details of my other loans/credit cards as requested by the lender. I succefully got the loans without being asked to verify them.

If I am going bankrupt, will the official receiver/lenders sue me for dishonesty? Are there any legal consequences?

wok_boy

When you phoned up for advice did you mention missing out certain details to the other lenders?

Rupert_Bear

hcg0706 wrote: »

I am going bankrupt. I have several personal loans. However, when I applied for some loans, I did not disclose all details of my other loans/credit cards as requested by the lender. I succefully got the loans without being asked to verify them.

If I am going bankrupt, will the official receiver/lenders sue me for dishonesty? Are there any legal consequences?

I would have thought when you applied for the loan you would be credit checked and the would be lender would see other financial commitments you have.

No know it will be hard but I feel you should be honest with the official receiver.

hcg0706

wok_boy wrote: »

When you phoned up for advice did you mention missing out certain details to the other lenders?

I made my application online.

wok_boy

hcg0706 wrote: »

I made my application online.

Even so they'll have a record of it. I applied for a loan about 5 years before I went BR, did it online and they sent me the agreement through the post.

JCS1

The lenders concerned may complain to the OR who would then investigate your affairs in more detail. But I think you would be looking at a BRU/BRO rather than then being sued.

lilibet1

Im sorry not sure about this one but im sure lots of people will be able to help you soon.

x

debtinfo

Ok, please bare in mind that what i am about to say is the worst case scenario and depends entirely on the circumstances of the case, who said what, when, why and who if anybody has been harmed.

But, the OR can do 3 things

1. Nothing, if they feel that no one has really been harmed or its out of their juristiction or it is legaly barred in some way (ie by time)

2. They could apply for a BRO/U which in a sence continues some of the bankruptcy restrictions for between 2 and 15 years. This if taken forward would be because usually that you took credit when you had no prospect of repaying

3. Additionally to the BRO/U and for a different reason, that being that the same action broke some criminal laws such as fraud or theft then they could pass you forward for prosecution which in the extreme examples can result in custodial sentences

This is as i say the extreme far end of what can happen but you did ask. For instance i have ssen custodial sentences for people lying about income to obtain mortgages, but the amounts were very high and numerous

lilibet1

Debtinfo

Always full of good advice, i was wondering and maybe others have thought of this. If you go onto the insolvency webpage and look at what people that got BRO/BRUS for, could you tell me if any of those people would have been prosecuted or sent to prison? I dont know the answer to this so maybe you do? Would you have had to do something in the £100,000's to warrant this as i still worry over things that im told not to, especially as my BR date is further away than i hoped.

x

JCS1

I know of one case at the office that I worked at that was referred for prosecution, and that was in a 2 year period - so it is very rare.

lilibet1

Thanks jcs1

Do you mind me asking what the person had done wrong?