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InDireStraits
Starting Member
4 Posts |
 Posted - 02 July 2010 : 18:02:37
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Hi, I am thinking on going bankrupt, I have 2 loans, along with 3 credit cards. When I took out the loans I was desperate and stated on them I was working and a home-owner, I wasn't I am unemployed and live in council property, they are both unsecured loans. I have no car and no assets as such.
Whats the worst case scenario that could happen to me, will I end up in jail! I'm at my wits end!
I know I've been so utterly foolish but any advice would be gratefully appreaciated. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 02 July 2010 : 18:24:16
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Hi indirestraits
how long ago did you take out the loan ?
yes you are totally wrong in taking out the loan and lying on the application, the onus on whether a criminal prosecution will follow will be with the loan provider.
however most loan providers have not acted correctly and surely should have an adult responsibility to check your application and prevent giving out money too easily, in view of this a lot of the loan providers do not want to wash their dirty linen in public.
what will push the loan company is how recent the loan applciation was ?
what is your outlook for getting a job ? if you can find work you may be able to negotiate a settlement.
good luck on the path ahead Richard |
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InDireStraits
Starting Member
4 Posts |
Posted - 02 July 2010 : 18:27:43
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thank you for your reply Richard.
I took one loan out about 4 years ago, its got 2 years left, another loan I took out 2 years ago and thats got 2 years left on it.
Myabe unemployed was the wrong word to use (i'm in such a state), I'm actually a carer for my hubby who is disabled. |
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debtinfo
forum expert
2826 Posts |
Posted - 02 July 2010 : 18:58:44
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The Official Receiver who looks at your case can put you forward for a prosecution.
It depends on the amounts involved, the harm done to the creditor and the age of the credit.
only about 2 in every 1000 bankruptcies get put forward for prosecution though. It is more likely that they may cndider a BRO which extends your bankruptcy restrictions for a peiod of time |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 02 July 2010 : 20:05:40
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are any of the loans or debts joint loans ?
because if they are and you elect to go BR the debt will pass to your husband.
OK lets put the application to one side whatever is going to happen with them is going to happen.
so the five outstanding debts need to be addressed do you have funds or anticipated funds to cover the lump sum repayment ? if the total amount outstanding is less than 15K you may qualify for a debt relief order,
if not then without knowing your full circumstances BR may be the best option
regards Richard
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InDireStraits
Starting Member
4 Posts |
Posted - 02 July 2010 : 21:43:19
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Thank you both very much for your replies.
The debt is in my name alone Richard. I owe just over 15k, that why I thought bankruptcy might be the better option rather than a debt relief order.
I owe roughly 4k on one loan and 3.5k on another loan, the rest on credit cards
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InDireStraits
Starting Member
4 Posts |
Posted - 02 July 2010 : 22:12:16
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| Sorry meant to ask another question. I see you mentioned the Official Receiver could prosecute, can the loan compnay do anything about it ? |
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debtinfo
forum expert
2826 Posts |
Posted - 03 July 2010 : 07:26:39
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| They can do but very rarely do. |
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savana
Starting Member
5 Posts |
Posted - 26 December 2010 : 06:53:32
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| I want to know the rules and laws that the loan company follows and what are their ways of doing it as mention in this case. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 27 December 2010 : 00:00:22
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Hi indirestaits,
In bankruptcy terms the loans are of a relatively low value, plus at £15k your total debt is again relatively low, the chances of a criminal prosecution are extremely low, as is going to jail.
Also as one loan was taken out 4 years ago, that is now what the OR would call stale and not followed up, with the other being taken out about 2 years ago again it is becoming stale, so combined with relatively low indebtedness, and the above the most likely outcome would be not to get early discharge.
Finally do the lenders know that you lied on the application forms?
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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Lying on a loan application
