A False Statement About One Asset Isn’t Grounds for Non-dischargeability, Supreme Court Rules - ABI

The Supreme Court yesterday resolved a split of circuits by holding that a false statement about one asset must be in writing to provide grounds for rendering a debt non[-]dischargeable under Section 523(a)(2), according to a special analysis by ABI's Bill Rochelle. The 15-page opinion by Justice Sonia Sotomayor focused primarily on the plain language of the statute and the meaning of the word “respecting.” The opinion was unanimous, except that Justices Clarence Thomas, Samuel A. Alito Jr. and Neil M. Gorsuch did not join in a section of the decision where Justice Sotomayor buttressed her conclusion by relying on legislative history surrounding the adoption of the Bankruptcy Code in 1978.

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