What is the bankruptcy court admissibility of a loan application if there is no date on the application?
sixfiguredesi asked:
I may have to file Ch7/13 and my loan application has an overstatement of assets. There was no fraud intended. However, there is no date on the application. Can it be thrown out in bankruptcy court?
Rent Car
I may have to file Ch7/13 and my loan application has an overstatement of assets. There was no fraud intended. However, there is no date on the application. Can it be thrown out in bankruptcy court?
Rent Car
Comments (2)
Isn’t an application just that? An application? Many loans indicate an “estimated” amount and can be changed once the exact dollar figure is determined, usually indicated by a small case “e” after the “amount financed”. In order to seek loan approval, the estimated amount is usually higher than the actual loan, just to ensure approval for a specific amount. If the loan amount is lower, no problem. But, should it increase, you might reach a threshold where you could be rejected for the loan amount.
Without contacting a bankruptcy attorney, I would have to say it is not a loan until finalized and approved.
As far as overstatement of assets, one would have to determine if the statement is intentional. If so, that could be considered fraud. If this was not intentional and a basic explanation can be provided, it may be difficult to prove fraud.
I would let the attorney lose sleep over it, not you.
I agree with JD….this is an application. Was the loan approved and did you get the money?
If you don’t have a loan with them, it will never even come up in BK court.
If you did get the loan, they will have records when you got the loan. The application would not be important at all.
The only important thing is when you had the property, when you got rid of it, and how everything is being reported. If you liquidated a lot of property within 90 days (I think that’s the timeframe) of filing your BK you could have an issue. Your Attorney will be better able to answer this once you fill in the details.
Good luck.