Open Access. Powered by Scholars. Published by Universities.®
523; 523(a)(2)(A); Bankruptcy Code; Debtors; Discharge Debt; Debt; Fraud; False Pretenses; False Representation; 523(a)(2)(B); Lamar
Articles 1 - 1 of 1
Full-Text Articles in Law
The Devious Debtor: 11 U.S.C. § 523(A)(2)(B) And The Need For A More Equitable Outcome, Torie Levine
The Devious Debtor: 11 U.S.C. § 523(A)(2)(B) And The Need For A More Equitable Outcome, Torie Levine
Brooklyn Journal of Corporate, Financial & Commercial Law
Section 523(a)(2)(A) of the Bankruptcy Code prohibits debtors from discharging debts for money, property, services, or credit obtained by false pretenses, a false representation, or actual fraud other than a statement respecting the debtor’s financial condition. Under § 523(a)(2)(B), if those debts are obtained by a statement respecting the debtor’s financial condition, then the statement must be in writing for the debt to be discharged. A conflict among the circuit courts arose as to whether a statement about a single asset can be a statement respecting the debtor’s financial condition. The majority of the courts applied a narrow interpretation to …