Lamar, Archer & Cofrin, LLP v. Appling, No. 16-1215
The Supreme Court issued a ruling today regarding the non-dischargeability of certain statements. The Court performed a close reason of Bankruptcy Code section 523(a)(2) which is the fraud exception to bankruptcy discharge. In this case, the Court held that a statement in question did not bar the debtor from obtaining a discharge. While a bankruptcy discharge broadly releases a good faith debtor from personal obligation to pre-filing debts, it is crucial to understand that the Bankruptcy Code also contains numerous exceptions, such as certain tax debts, student loans, domestic support obligations (alimony, child support), and relevant in this case certain debts obtained by false pretenses or fraud. It is important to speak to an experienced attorney if you are considering filing a bankruptcy to understand the effects and possible pitfalls of the bankruptcy process.
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