Section 523(a)(2)(A) excepts for discharge any debt for money to the extent obtained by false representation. A creditor must show that the debtor’s actions were purposefully deceptive or misleading. Courts infer requirements establishing intent, reliance and materiality.
To provide that a debtor acted by false representation, the objecting creditor must show the following: (1) debtor made an express false or misleading statement; (2) with the intent to deceive; (3) on which the creditor justifiable relied; and (4) in order to induce the creditor to turn over money or property to the debtor.
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Monday, May 17, 2010
Section 523(a)(2)(A): False Representation
Posted by Attorney Robert Schaller at 12:10 AM
Labels: Section 523(a)(2)(A)
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