Bankruptcy Law—Fraud Exception to Discharge

Lamar, Archer & Cofrin, LLP v. Appling, No. 16-1215

The Bankruptcy Code prohibits the discharge of “any debt . . . to the extent obtained by . . . actual fraud, other than a statement respecting the debtor’s . . . financial condition.”  11 U.S.C. § 523(a)(2).  Circuit courts have split 3-3 as to whether a statement about a particular asset can qualify as a “statement respecting the debtor’s . . . financial condition.”  The Supreme Court has agreed  to resolve that split.  Mayer Brown LLP represents the respondent.