Weiner v. National Bank of Commerce

RONEY, Circuit Judge:

This appeal turns on but one question: did the bankruptcy court err in *988denying a bankrupt a general discharge under Section 14(c)(3) of the Bankruptcy Act, 11 U.S.C.A. § 32(c)(3), because, while engaged in business, he obtained money for that business on credit by making a materially false financial statement? The bankrupt’s use of a materially false statement to obtain money is not challenged. The applicability of Section 14(c)(3) turns on whether, under the facts of this case, the bankrupt was engaged in a business for which the money was obtained. We hold that he was…