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No. 21-908October Term 2022Decided Feb 22, 2023

Docket 21-908October Term 2022 (2022–2023)

Bartenwerfer v. Buckley

Kate Bartenwerfer and her husband sold a house with defects, leading to a fraud judgment against them before they filed for bankruptcy.

Case status

Current stage
Decided
Latest event
Decision released Feb 22, 2023
Case Accepted
Arguments
Decision ReleasedFeb 22, 2023
What it's about

Kate Bartenwerfer and her husband sold a house with defects, leading to a fraud judgment against them before they filed for bankruptcy. The Supreme Court ruled that a debtor cannot discharge a debt obtained by a partner's fraud in bankruptcy, even if the debtor was completely unaware of the fraudulent acts.

Question presented

Whether a debtor may be held liable for another’s fraud under 11 U.S.C. § 523(a)(2)(A) and thus barred from discharging the resulting debt in bankruptcy, even if the debtor had no knowledge of the fraud.

Case path

United States Court of Appeals for the Ninth Circuit / Decision released Feb 22, 2023

Area

Decided Supreme Court case