§ 523

Lucas v. Lyle (In re Lyle)

Plaintiff creditors, owners of a residence, brought an adversary proceeding against defendant bankruptcy debtor, a contractor, alleging that a debt to the owners for the contractor's defective work was nondischargeable under 11 U.S.C. § 523(a)(2)(A) based on the contractor's misrepresentation that the contractor was licensed. The bankruptcy court reconsidered the owners'claim upon remand from the district court.
Ruling: 
Debt for unlicensed contractor debtor's damage to a residence from defective work was deemed dischargeable since the debtor did not misrepresent that the debtor was unlicensed.
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