| Author: |
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Janet |
| Date: |
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May 10, 1999 |
| Question: |
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I understand debts obtained by fraudulent misrepresentation are not written off by declaring bankruptcy. Can a creditor really pick a loan application apart to find misrepresentation?
For example, if someone exaggerated value of their personal belongings
or value of their home (which were not colletral to the loan) not with
an intent to fraud the creditor (ie, full intention to pay the loan
back) but to have the loan approved easily? Who makes the decision on
what is fraudulent misrepresentation?
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From: |
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Shane Brenneis, Collins Barrow Limited |
| Date: |
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May 13, 1999 |
| Answer: |
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In order for a debt to survive bankruptcy due to fraudulent
misrepresentation, the creditor has to prove fraud in civil court. If
the court decides that fraud has occurred, the debt could then survive
bankruptcy proceedings.
Shane Brenneis
(403) 298-1575
sbrenneis@collinsbarrow.com
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