Here is another simple four sentence summation. Maybe this will clear up your confusion.
Misrepresenting your finances to a lender is an act of fraud, because there is an obligation by the borrower to be truthful.
That obligation is independent of who the lender is, and what actions the lender may or may not take.
The state AG institutes civil actions against people who persistently commit acts of fraud, simply because there is a state interest in minimizing fraud, whatever the arena.
Notwithstanding the actions of any particular counterparty of such acts, and notwithstanding who might be any individual or particular counterparties.
Clear enough?
Quote: but it is for some reason NOT the case, are you not now simply defending a premise that you obviously don't think is correct?
No, filing it or not does not change the underlying obligation to not lie or misrepresent on your financials to the lenders. I dont see how that changes the issue in the slightest. Maybe in tinytown, there is a big thing difference between information that is filed, versus the same information that serves as a SFC that is relayed to financial institutions in order to obtain financial services.
Im not defending the premise of 'filing'. Im defending the premise regarding the obligation above. I guess that wasnt clear to you when you typed out the above.