Bankrupcy,fraud

[norfolk boy]

Can anyone define to me what is the line where you can go bankrupt through running up credit card debit,because you cannot pay back,or taken to court and charged for fraud because you cannot pay even if you bankrupted your self.Who decides it's bad luck or blatant fraud?

[Maude]

Ceasing to pay your Card triggers an immediate investigation by the Card Provider into deceipt and fraud by examining whether you made a statement (a) false to your knowledge, or (b) recklessly and carelessly not caring whether it was true or false, and (c) thereby causing the Provider to act upon it by allowing you credit and suffering a loss in doing so. If the answer to all or any part is yes, then the Provider is legally compelled to start Criminal Proceedings. Regarding Bankruptcy, there are I think 8 specific acts of bankruptcy all of which boil down to either a declaration to evade or a declaration of inability to pay debts. The Receiver has a legal duty to consider whether any fraudulent act has taken place before, during or after bankruptcy, and, if so, is compelled to commence Criminal Proceedings. Bankruptcy only protects from civil actions by creditors, but does not in any way protect from jail, and you can be made bankrupt before, whilst in and after being freed from jail, and vice versa. A report is also filed with the National Criminal Intelligence Service resulting in the 5am knock, and consideration is given to confiscation under the Proceeds of Crime Act.

[zeus]

good answer i couldnt of put it better myself!! (Bank manager)

[Michael H]

Perfect text book answer Maude, but in practice, about one in FIFTY cases of suspected fraud are actually reported in this way. We simply dont have the resources to prosecute every defaulter who has lied on their applications. Can you IMAGINE the burden of proof!!!! Answer to norfolk boy is you have over a 90% chance of getting away with it. (V. Senior bank officer)