In the late 1990s, I met a Chinese businessman here at Dallas who knew his business would soon go bankrupt. He concealed that knowledge from his bank and other financial institutions.
In anticipation of that bankruptcy, he applied to 10 different banks for credit cards. Believing his business to be financially viable, the banks issued all 10 credit cards–each with a $25,000 limit. He acquired a collective credit limit of $250,000.
He exhausted his $250,000 credit card limit in the first month after he received the credit cards. He bought TVs, lawnmowers, new clothes and signed up for vacations. Then, he paid nothing on the cards. When each of the 10 banks contacted him asking for payments, he replied that he’d be happy to pay if the banks would simply verify the debts.