Lied about working

scaredaboutdebt

Hi i'm new to this forum and would really appreciate some advice please.

I have had credit for several years now but at the stage where i can not afford to repay we both jointly have about £50,000 of debt.

However to obtain the credit as we were on benefits i lied about working on the forms. I'm now scared if i go bankrupt that i will be arrested for fraud.

Also i tried to set up a small round last year in order to gain some income and try to hopefully get of benefits, my friend was going to do the work as i couldn't. In order to get going we needed public liability which i paid. However it never took of but i noticed on the form it asks about businesses, i recieved literally a couple of payments and that was it, so there are no accounts as was not any to keep but it will obviousbly show that last year i took out business insurance on my bank account. But there was no business please help, these reasons are all stopping me going bankrupt but i know i so desperately need to.

Flyright

The OR will ask you about the credit you obtained. You need to be honest about the application information as the OR can obtain this anyway. The OR's sanctions are civil in nature but they can and do pass evidence of criminality to prosecuting authorities. You need to be honest about everything.

matt-comparison

I feel for you but I would suggest you advise your attorney.

alastairq

I feel for you but I would suggest you advise your attorney.

As this forum is UK-based, it is unlikely, in this case, someone would have a solicitor on hand [attorney is the US equivalent]...

Certainly, if intending to petition for BAnkruptcy in this country, a solicitor is very unlikely to be needed, or, indeed, in the frame.

If charges of Fraud are instituted, they will be brought by the creditors concerned.

This would be another matter entirely..and since there is an admission , the only viable outcome would be in the mitigation.

Since the OP actually made credit repayments, there is proof that credit was not actually sought with the intention of non-payment.

Whether being 'in' employment at the time of application, or not, may not have had bearing on the issue of credit.

Obtaining credit, without intention of repaying, however, is another matter.

The 'business' issue can be explained to the Official Receiver when under interview.

Simply obtaining 'business insurance' in itself doesn't mean one is conducting a 'business'....

Intention is one thing, actuality is another.

scaredaboutdebt

alastairq wrote: »

as this forum is uk-based, it is unlikely, in this case, someone would have a solicitor on hand [attorney is the us equivalent]...

Certainly, if intending to petition for bankruptcy in this country, a solicitor is very unlikely to be needed, or, indeed, in the frame.

If charges of fraud are instituted, they will be brought by the creditors concerned.

This would be another matter entirely..and since there is an admission , the only viable outcome would be in the mitigation.

since the op actually made credit repayments, there is proof that credit was not actually sought with the intention of non-payment.

Whether being 'in' employment at the time of application, or not, may not have had bearing on the issue of credit.

Obtaining credit, without intention of repaying, however, is another matter.

The 'business' issue can be explained to the official receiver when under interview.

Simply obtaining 'business insurance' in itself doesn't mean one is conducting a 'business'....

Intention is one thing, actuality is another.

hello, thank you for your reply, can you please clairfy your by mitigation comment.
Obviousbly on the form it asks when i last worked so i need to be honest on that section? This will then show that i obtained credit after i stopped working. Would they tell the creditors this information?
I have had most cards for approx 6 or more years and always paid and up to date. Just struggling now.
What is the liklihood of this being pursued on a criminal matter? I have a family to look after and the thought of going to prison for a silly lie when i had every intention to pay back terrifies me.

Flyright

You need to be honest with every aspect of the bankruptcy process as you provide information to the court and the Official Receiver and the interview is covered by the Perjury Act. It will be up to the Official Receiver (or specifically the Examiner who deals with your case) to decide whether your lying to obtain credit justifies referring to departmental lawyers for prosecution. It does happen though. You need to be honest from hereon if you do go bankrupt. It is not a process to be taken lightly.

TheGardener

Given the length of time the OP has had the cards and the fact it seems clear the OP had every intention of repaying the debts up to now - I actually think it is quite possible the OR (over worked, with massive caseloads and instructions to do the minimum required) wont even pick up on the fact the OP lied to get the credit. I would answer every question the OR asks you completely honestly - but do not offer answers to questions you have not been asked...

I was never asked for details of my employment history, nor was I asked about any of my credit applications - the OR was only interested in how much I owed and earned at the point I went BR.
I think it is possible you are over thinking this as far as the OR is concerned.
There is a possibility creditors might not even notice as it was 6 years ago but given that you re-paid so much of the money and that they have no hope of financial redress after your BR, I can't see why they would bother to chase you.

scaredaboutdebt

Flyright wrote: »

You need to be honest with every aspect of the bankruptcy process as you provide information to the court and the Official Receiver and the interview is covered by the Perjury Act. It will be up to the Official Receiver (or specifically the Examiner who deals with your case) to decide whether your lying to obtain credit justifies referring to departmental lawyers for prosecution. It does happen though. You need to be honest from hereon if you do go bankrupt. It is not a process to be taken lightly.

Thanks I certainly have no intention to lie to the bankruptcy court and will be fully honest

alastairq

If charges of Fraud are instituted, they will be brought by the creditors concerned.

This would be another matter entirely..and since there is an admission , the only viable outcome would be in the mitigation.

The above is from my last post.

The Official Receiver has no interest in what was put on a credit application form.

That is for the creditor to decide whether the information adversely affected the decision to offer credit.

Since they obviously did offer credit.[after conducting their own conformational checks, of course]...and the debtor has actually made payments on the account [so there is no real evidence the credit was obtained, without intention of repaying]...I don't think there will be an issue.

If a creditor feels a need to go to Court over the matter....then obviously, the debtor will agree that they gave incorrect information.

Thus, the 'mitigation' bit comes into play...this is where the 'guilty party' then offers the Judge evidence intended to affect the outcome of any penalties imposed. [ie reduce any penalties.]

alastairq

scaredaboutdebt wrote: »

Thanks I certainly have no intention to lie to the bankruptcy court and will be fully honest

It is unlikely any reference will be made to the original credit application, in your BAnkruptcy proceedings.

Only answer questions if they are put to you.

scaredaboutdebt

alastairq wrote: »

It is unlikely any reference will be made to the original credit application, in your BAnkruptcy proceedings.

Only answer questions if they are put to you.

Thanks last night I spoke to my sis in law who works as legal secretarty, she said to write to obtain the original application so she can take it into work to look at should it go down the legal route. Surely this will highlight the application though if I did this, what do you think.
sory to keep gong on, i just need to make sure i'm doing the right thing