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Why pay back some of the money at all then? If you are knowingly scamming the system (and the lender) you don't take out a $2,000 loan, just to pay back $400 b
by giarc 11y ago
Why pay back some of the money at all then? If you are knowingly scamming the system (and the lender) you don't take out a $2,000 loan, just to pay back $400 before declaring bankruptcy.
- Unklejoe 11y agoMy guess is to avoid the possibility of the creditor claiming that you took out the loan after already knowing that you were going to declare bankruptcy. The 4 on-time payments make it look like you tried to pay the loan back but just couldn't afford it. If no payments were made at all, it would be easier to prove that there was intentional fraud. If such is proven, it may be impossible to wipe the loan during bankruptcy.
- deleted 11y ago[deleted]
- edc117 11y agoAnd further, how do credit card or other lending companies avoid this (if at all)? Is there additional information or red flags they collect that LendingClub does not?