Bloomberg BNA's Bankruptcy Law Reporter published an article by Bass, Berry & Sims attorneys John Speer and Michael Kapellas providing insight on the recent Supreme Court decision, Husky International Electronics v. Ritz. The Court's ruling resolved a conflict among the First, Seventh and Fifth Circuits regarding the non-dischargeability of debts "obtained by … actual fraud." The Court determined that "actual fraud" preventing discharge does not require a false representation. The article explains the Court's analysis that shifts the balance between the "fresh start" goal of bankruptcy and the non-dischargeability of a debt and the issue the Court left unanswered concerning the interpretation of a part of the Code's non-dischargeability provision that will determine the impact of the Court's decision.
The full article, "False Representations No Longer Required to Prove 'Actual Fraud' Under the Bankruptcy Code," was published by Bloomberg BNA on August 2, 2016, and is available online or in the PDF below.