Can A Debt Obtained By Fraud Be Discharged

Can A Debt Obtained By Fraud Be Discharged

No, fraudulent debts cannot be discharged. The US Supreme Court has held that § 523(a)(2)(A) of the Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability.
    • Related Articles

    • Fraudulent Transfers via Constructive Fraud

      For a transfer to be a fraudulent transfer via constructive fraud according to UFTA (Uniform Fraudulent Transfer Act), it must say "YES" both of these questions: (1) Was there no exchange of reasonably equivalent value? FUFTA does not define ...
    • Fraudulent Transfers via Fraud in Fact

      Section 5 of the Uniform Fraudulent Transfer Act states: (a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, ...
    • Do Government or Court Debts (Judgements) Go Away

      Anyone can "ask for validation" of a contract or judgement. A private contract like one has with a home contractor or any federal agency - that debt will need to be paid. The federal and state governments are considered sovereign and therefore debts ...
    • What is The Difference Between Discharge and Charge-Off in Debt

      The bankruptcy "discharge" is a court order that the creditors who are owed money, cannot do anything to collect those debts from the debtor. If the debt is marked "charge-off" then the debt is still the consumer's legal responsibility, even if the ...
    • Can Tickets, Fines, Tolls, Child Support, Alimony or Assessed Tax Debts Be Discharged

      Even a bankruptcy will not discharge many tickets, tolls, fines, child support, alimony payments, and assessed tax debts. These are considered non-dischargeable debts, meaning they must be repaid. Though it depends on what the tickets or fine was ...