First Credit Corp. v. Wellnitz

The trial court, in reliance upon Household Finance Corp. v. Christian (1959), 8 Wis. (2d) 53, 98 N. W. (2d) 390, held that one who obtains an extension of credit by means of a materially false financial statement and who thereafter receives a discharge in bankruptcy remains legally responsible only for the new portion of the debt, i.e., that portion of the total debt which represented fresh cash received at the time of the extension. The Christian Case was decided before the amendment of sec. 17 (a) of the Bankruptcy Act, recited above.

We must determine whether the amendment of sec. 17 (a)…