Justices Remind Creditors To Get Debt Agreements In Writing

By Alex Wolf (June 4, 2018, 9:58 PM EDT) -- Creditors who rely on the good faith of debtors for repayment were firmly reminded Monday that any agreement to extend credit should be in writing, according to experts weighing in on the U.S. Supreme Court's decision concerning the dischargeability of consumer debts procured by fraudulent statements.

In a debtor-friendly interpretation of a U.S. Bankruptcy Code provision dealing with the dischargeability of a common type of obligation, the court unanimously ruled Monday that debts obtained using false statements "respecting the debtors' ... financial condition" can be terminated in a consumer bankruptcy case even if the statement is about just a single asset,...

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