Legal Question in Credit and Debt Law in California

Based on what you said there is no evidence of fraud. If you never intended to pay when you took the loan or you did not use the money for its intended use or you made false representations before the contract was signed, then that could be fraud. Inability to pay alone is not fraud. Assuming you tried your best then you should not fear being sued for fraud. If you are sued for the debt, whether or not there is an allegation of fraud against you in the complaint, you will have to hire an attorney to answer timely. The person or company suing you will have to prove in court that you committed fraud. Bankruptcy if you are sued may be an option but your entire financial situation needs to be considered. A creditor can sue you in bankruptcy court, called an adversary proceeding, and prove that a loan was obtained by fraud and then the debt will still be owed after the bankruptcy discharge