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Posts tagged "Bankruptcy discharge exception materially false financial statement agency reckless indifference"

First Circuit Holds Bankruptcy Debtor May Be Subject To Fraud Discharge Exception Through Agency

The First Circuit has held that a bankruptcy debtor may be subject through agency to a discharge exception for money procured through a materially false financial statement. 11 U.S.C. 523(a)(2)(B). Further, the Circuit Court said that reckless indifference to the accuracy of the financial statement was sufficient culpability to apply the exception.