My question involves criminal law for the state of: Oregon
In June I was laid off and was short on cash. I had been out on medical leave and upon my return to work was laid off. I didn't/don't have any family or friends to borrow money from. I had applied for short-term disability and was expecting over $10,000 from this. However, my claim was denied due to a pre-existing condition clause. I appealed but it was again denied.
I am still unemployed and have fallen behind on all my debt. I had my car repossessed on Friday and I'm at risk of losing my house next. I owe the IRS, State of Oregon, plus more.
Anyway, I provided false employment information on a $3,000 personal loan application at a credit union. It was my intention to repay the loan with the disability funds. After my disability was denied, I continued to make the minimum payments on the loan, but as I said, I've fallen behind. I sent a letter to all my creditors explaining my situation and asked for assistance with a payment plan until I am working again.
Today the credit union called me about my loan application. I honestly didn't remember providing false information but upon reviewing the documents, I clearly did. The agent said they could prosecute but would rather work with me.
In addition to the loan, I also have a credit card with the credit union (I'm also behind on payments but it is legit). The agent offered the following option:
* Modify the CC to a personal loan
* Cut the interest rate
* Lower the minimum payment
* Put the $3,000 loan into a special forbearance for an extended period of time (provided I maintain current on the new payment plan)
I'm not sure I can make the minimum payments until I get a job but the agent said this is all he can offer. I obviously don't want to risk prosecution, but if I can't stay current I may not have any other option.
I take responsibility for my actions and am trying to live my life by certain principles that are new to me. I would appreciate any input.

