The most important point here is if you took out a loan using false or misleading information. Doing that would be fraudulent and could land you in hot water and out of favour with the court.
However, it would be doubtful that you would wind up in prison. What might happen is that you might find yourself on the receiving end of a Bankruptcy Restriction Order. Regardless, it is not something to be taken lightly.
If however you found yourself unable to afford the debt after providing accurate information and having the loan approved by the creditor, you will not go to jail and the chances of being subject to a Bankruptcy Restriction order in that case are slim.
Think about it like this, if you lied to get the loan, you assumed the risk. If your creditor approved the loan based on your truthful information, then they assumed the risk.
If you want specific advice regarding your situation you might consider a personal consultation through our Bankruptcy Assistance Service.
You might also be interested in watching the online video with the Insolvency Service regarding this topic. Can I Go to Jail for Insolvency Fraud?
