§ 523(a)(2)(B)

Peoples Trust & Savings Bank v. Hanselman (In re Hanselman)

Plaintiff creditor brought a Complaint to determine dischargeability of debt against defendant debtor. At trial, the creditor limited the scope of its Complaint to seeking a determination of nondischargeability regarding Claim 1-1 pursuant to 11 U.S.C.S. § 523(a)(2)(B). Judgment was pending.
Ruling: 
Debt was dischargeable where creditor's reliance on poorly completed financial statement was not reasonable.
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Consumer case opionion summary, case decided on April 21,2011, LexisNexis #0511-137

Northland Natl Bank v. Lindsey (In re Lindsey)

Appellant creditor bank challenged a decision of the United States Bankruptcy Court for the Western District of Missouri, that held appellee debtor's obligation to the bank was dischargeable under 11 U.S.C.S. § 523(a)(2)(B), because the bank had not relied on representations in the debtor's and his wife's financial statements in extending them credit.
Ruling: 
Bankruptcy court properly held appellee debtor's obligation to the bank was dischargeable because the bank had not relied on representations in the debtor's financial statements in extending credit.
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Consumer case opionion summary, case decided on February 08,2011, LexisNexis #0211-119

Swift Fin. v. Sass (In re Sass)

According to plaintiff bank, it suffered damages of $21,426 as a result of defendant debtor's fraudulent actions relating to a loan application. The bank sought a judgment in that amount as well as a declaration that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A) as one for money obtained by false pretenses, false representations, and actual fraud. Debtor moved to dismiss the amended complaint under Fed. R. Civ. P. 12(b)(6).
Ruling: 
Debtor's oral telephonic statements respecting financial condition could not be basis for nondischargeability.
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Consumer case opionion summary, case decided on December 29,2010, LexisNexis #0211-022

Swift Fin. Corp. v. Matera (In re Matera)

Defendant debtor filed a motion for judgment as a matter of law in plaintiff creditor's action, which alleged that debt owed to it by the debtor was nondischargeable under 11 U.S.C.S. § 523(a)(2)(B).
Ruling: 
Representations in debtor's oral responses into creditor lender's computer database did not constitute a "written statement" and were not grounds for nondischargeability.
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Consumer case opionion summary, case decided on December 08,2010, LexisNexis #0111-123

Northwest Bank & Trust Co. v. Edwards (In re Edwards)

Plaintiff creditor filed a complaint against defendant Chapter 7 debtors seeking a determination of nondischargeability of a debt resulting from a state court consent judgment based on the language of that judgment. Alternatively, the creditor alleged that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(B). The creditor moved for summary judgment, alleging that the consent judgment should be given preclusive effect.
Ruling: 
Consent judgment was dischargeable as it did not acknowledge falsity or intent to deceive.
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Consumer case opionion summary, case decided on November 09,2010, LexisNexis #1210-049

Premier Bank v. Koester (In re Koester)

Creditor brought an adversary proceeding against defendant bankruptcy debtors seeking a determination that debts to the creditor were nondischargeable under 11 U.S.C.S. § 523(a)(2)(B) based on the debtors' false statements of ownership of real property in financial statements which induced the creditor to loan money to the debtors' construction business. The creditor moved for summary judgment.
Ruling: 
Loans guaranteed after debtor made false financial statements was nondischargeable.
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Consumer case opionion summary, case decided on September 29,2010, LexisNexis #1110-020

American Gen. Fin. Servs. v. Johnson (In re Johnson)

Plaintiff creditor filed a complaint to Determine Dischargeability of Debt against defendant debtor, asserting that a loan debt was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(B).
Ruling: 
Debtor's gross overstatement of income on loan application resulted in nondischargeable debt.
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Consumer case opionion summary, case decided on September 27,2010, LexisNexis #1010-115

Callaway Bank v. Ray (In re Ray)

Plaintiff bank filed an adversary proceeding against defendant chapter 7 debtors, a husband and wife, seeking a determination that the debtors owed the bank a debt in the amount of $3,071,599 that was nondischargeable under 11 U.S.C.S. § 523(a)(2)(B), (a)(4), and (a)(6). The bank filed a motion for summary judgment.
Ruling: 
Debt was nondischargeable against debtor who falsely represented cattle ownership but not against debtor spouse absent evidence of fraud.
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Consumer case opionion summary, case decided on September 15,2010, LexisNexis #1110-021

Harmon Autoglass Intellectual Prop. LLC v. Leiferman (In re Leiferman)

Chapter 7 debtor sought review of an order of the Bankruptcy Court for the District of Minnesota, which struck his answer as a sanction for discovery abuses, entered a default judgment against him and in favor of appellee creditor in the amount of a judgment debt, and found that debt to be nondischargeable under 11 U.S.C.S. § 523(a)(2)(B).
Ruling: 
Bankruptcy court did not err in striking debtor's answer in nondischargeability proceeding and entering default judgment of nondischargeability.
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Consumer case opionion summary, case decided on April 30,2010, LexisNexis #0710-016

Richards & Sons Constr. Co. v. Odom (In re Odom)

Creditor, which had advanced funds and credit to or on behalf of the individual debtor's wife's corporation, alleged that the debts therefor were nondischargeable due to fraud under 11 U.S.C.S. § 523(a)(2)(B). The issue was whether the creditor reasonably relied on the allegedly false financial information provided by the debtor.
Ruling: 
Debt was dischargeable where creditor could not have reasonably relied on corporation's false financial statement.
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Commercial case opionion summary, case decided on March 08,2010, LexisNexis #0510-087

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