Hatfield v. Thompson – Why Debtors (and Their Counsel) Should be Very Afraid of Husky

By Academy Staff

On May 16, 2016, the United States Supreme Court issued its decision in Husky International Electronics, Inc. v. Ritz.1 The Supreme Court concluded that § 523(a)(2)(A)’s “actual fraud” standard did not require the debt Plaintiff sought to except from discharge itself resulted from or was based on fraud. Instead, it is sufficient for purposes of § 523(a)(2)(A) that the debtor seeking to discharge the debt perpetrated some fraud that perhaps reduced the creditor’s ability to collect on its judgment. In . . .

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