Fraud

Texas judge rules in favor of the debtor on an issue similar to the question coming before the Supreme Court in Bartenwerfer.

Tenth Circuit insinuates that a debtor may have a nondischargeable debt even if the debtor did not personally benefit from fraud.

The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.

Had Congress considered the facts that were before Bankruptcy Judge Elizabeth Brown, it surely would have written the statute differently, this writer believes.

Someone who commits fraud can’t be denied a discharge for that reason alone if the debtor kept accurate books and records of the fraud.