Exaggeration of income on credit limit increase – how will this impact discharge of debt?
I had a credit limit increase prior to being on sick leave, and included income which I get from a side business but do not claim on taxes, or have records for any more as part of my income when applying for the credit limit increase. How will this affect the discharge of this debt if I claim bankruptcy?
The creditor could tell the court that you would not have been advanced the increased credit line if you hadn’t exaggerated your income.
The court could then rule that the debt is NOT erased since it was obtained by misrepresentation.
Please refer to:
- Earl Sands, Bankruptcy Canada Trustee