When does debt become a criminal case?

A default on a loan is a civil matter. The lender could try and sue to recover the money etc. In order for it to be criminal the lender would have to demonstrate that there was some sort of fraud in obtaining the loan and/or that there never really was any intent to repay it.

In most instances it would be a civil matter. However, if false information was given to the lender in order to induce the loan, then there could be criminal charges. As long as the application was honest, as well as any supporting documentation that was sent, the only issues should be civil.

It is generally civil but can be criminal if fraud/lies was used to obtain the loan or there never was a real intent to pay it back.

It is a civil case unless fraud is used to obtain or maintain the loan. If you obtain the loan under false pretenses, it can be criminal. If you pass a bad check to make a payment, it can be criminal. Finally, if you rake the loan w/no clear intent to pay it back, it can be criminal. Joseph Am Lo Piccolo, Esq. President, Criminal Courts Bar Association 11'-12' Hession Bekoff & Lo Piccolo 1103 Stewart Ave, Suite 200 Garden City, NY 11530 516-408-3666 (o) / 516-408-3833 (f) [email protected]