will exagerated income on cc application hurt bk possibilities?

It really depends on how much you exagerated by. Has your incocme changed since you applied for the credit card?

It depends. If you were truthful in all your dealings, then you have nothing to worry about. I'm unclear whether you misrepresented your income on the credit app, or whether you just got a paycut afterwards...

If you lied on the credit application, that can be a problem. In that case, they can object to the dischargeability of the debt on the grounds that you acted in bad faith. If a judge agrees, you might have to pay it back even if you BK.

I'm sure a couple hundred bucks per month might not be a big deal. But if you put down that you make $50K/year and really only made $20K, that really is a material misrepresentation.

Thats where it gets kind of sticky. I am a Real Estate agent and I kind of guesstimated what I thought I would make due to the listings I had at the time. Well, the market didn't bring NEAR what I expected with the fall out and the banks tightening up so much on loans. If I had closed some of the properties I had anticipated on, I would have made what I put on the apps. Unfortunately it didn't work out that way. I don't have an actual pay check to go by, so it was the only way I knew how to come up with the income for the apps. Also, would it make any difference at all between chap 7 & chap 13 on if they would forgive this?

My husband is a contractor, and we don't have a steady income either. We pretty much did the same thing in applying for credit cards. We had no problems with our Chapter 7, even though our income at the time we filed was much less than we had put on any of the applications. However, we had most of our cards for several years so there really was no way for them to know what our actual income was at the time we applied (which was stated accurately as nearly as we knew it). If your cards were more recently acquired, I don't know whether that might be an issue.

Everyone, including your creditors, knows that the Real Estate market has tanked. Was the income that you put down close to what you made the previous year? Even if it wasn't, it seems to me that if you estimated it in good faith, you didn't really commit fraud. Most BK attorneys give a free initial consultation. You might want to talk with one and see what advice s/he gives you.

WHATEVER or WHOEVER you have to provide your income to, I wouldn't "exaggerate" it. You may be having to make payments that you really can't afford.

It doesn't seem like you flat out lied, more just a loss of projected income. As long as you have some sort of justification for the income # you put down, I think you'll be fine. After all, part of their due diligence was to verify income, which they chose not to do.