Loans - fraudulent behaviour?

Hello,

I was wondering how long do you need to have been making repayments on a loan for, so as the courts do not see it as reckless/fradulent borrowing if you are declaring yourself bankrupt. The reason being, I have had a loan out for three months (although I have many more loans ) and I'm finding it very difficult to repay.

Thankyou

Replies

  • poorbabepoorbabe Forumite
    894 Posts
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    Hi JB

    Is it just this loan you have problems paying or all of them? Have you tried contacting CAB or CCCS? If you haven't, try one or both of them first before heading down the bankruptcy route.

    I'm afraid I can't offer you more advice as I'm in the process of taking out a loan myself, but I've never had a problem meeting the payments (more a problem of sensible money management *sigh*).

    Good luck
  • Basically I originally had 25k of Credit Card debt. My mum decided to remortgage her house and give me the money to pay them off and I would pay my mum a monthly amount instead. However I lost my job and I was finding it hard to pay my mum. She is retiring next year and does not need this hassle or financial stress in fact she is now ill because of this. So I took out loans to the tune of 23k and transferred them to my mum to pay her off so I was back where I started. Now I reckon I need to go bankrupt but I have not had these new loans very long and I lied on the loan application forms that I was employed. I know I will get a job soon however but it seems like an impossible task paying it off.

    I was wondering how long should you be paying back a loan for persons of the court to decide you didn't borrow it with the intention of going bankrupt? Which I actually did but I don't want them to know that.
  • idiot_3idiot_3 Forumite
    136 Posts
    you may have a problem because you said you were employed when you weren't.

    bankruptcy as far as i am concerned really should be the final solution. can you call your creditors and try to arranged lower payments?
  • BossybootsBossyboots Forumite
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    Basically I originally had 25k of Credit Card debt. My mum decided to remortgage her house and give me the money to pay them off and I would pay my mum a monthly amount instead. However I lost my job and I was finding it hard to pay my mum. She is retiring next year and does not need this hassle or financial stress in fact she is now ill because of this. So I took out loans to the tune of 23k and transferred them to my mum to pay her off so I was back where I started. Now I reckon I need to go bankrupt but I have not had these new loans very long and I lied on the loan application forms that I was employed. I know I will get a job soon however but it seems like an impossible task paying it off.

    I was wondering how long should you be paying back a loan for persons of the court to decide you didn't borrow it with the intention of going bankrupt? Which I actually did but I don't want them to know that.

    I think you will find they are more astute than you are giving credit for and will make an assumption that you did indeed take out these loans intending to go bankrupt. Someone here posted that in that situation, you remain bankrupt for longer so that more of your debts are paid. You may well have committed a criminal offence here so your actions may have consequences outside the civil/bankruptcy courts.

    Sadly, you have also committed a criminal offence by lying on the application form and as you are now not going to be able to pay it off I imagine the loan company will notify the police. You might have got away with it if you did not default.
  • jonesMUFCforeverjonesMUFCforever Forumite
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    I think you will find they are more astute than you are giving credit for and will make an assumption that you did indeed take out these loans intending to go bankrupt. Someone here posted that in that situation, you remain bankrupt for longer so that more of your debts are paid. You may well have committed a criminal offence here so your actions may have consequences outside the civil/bankruptcy courts.

    Sorry but the above is utter tosh! If they thought that you were going to go bankrupt there is no way in the world that they would have lent the money!!

    Lenders lend on the assumption that they will be repaid and yes the OP will be in deep deep trouble if he declares himself bankrupt even to the extent that they could put a caution on his mother's property at HM Land registry, therefore blocking any future sale if they think this act is deliberate.

    Eric
  • BossybootsBossyboots Forumite
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    The OP was asking whether the Courts would suspect she had borrowed the money deliberately to go bankrupt, not the lender. However, that said, once the lenders are aware she is bankrupt they will no doubt consider that for themselves. It will then be for them to decide whether to inform the police and, unless the OP is planning to lie to them, she faces the prospect of criminal charges.

    I am not sure they can put a caution on the mother's property. She was in receipt of repayment of a loan. They would have to establish that she knew this was being done with the intention of bankruptcy to have any claim against her. As an extension of that, if it can be established that was the case there is the risk of the mother also facing criminal charges.
  • jonesMUFCforeverjonesMUFCforever Forumite
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    If the Insolvency agency think this was done deliberately believe me they will do this.It won't affect the mother until such time as she wants to sell or after her demise it wil be left to her executor to sort out.
    Eric
  • Basically I originally had 25k of Credit Card debt. My mum decided to remortgage her house and give me the money to pay them off and I would pay my mum a monthly amount instead. However I lost my job and I was finding it hard to pay my mum. She is retiring next year and does not need this hassle or financial stress in fact she is now ill because of this. So I took out loans to the tune of 23k and transferred them to my mum to pay her off so I was back where I started. Now I reckon I need to go bankrupt but I have not had these new loans very long and I lied on the loan application forms that I was employed. I know I will get a job soon however but it seems like an impossible task paying it off.

    I was wondering how long should you be paying back a loan for persons of the court to decide you didn't borrow it with the intention of going bankrupt? Which I actually did but I don't want them to know that.

    Hiya, I see your post was a long time ago, but having read it i am interested to know what your outcome was. Did you go bankrupt??
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