In the Matter of John E. Mayer and Deborah Mayer, Debtors-Appellants v. Spanel International Ltd. And Bank One-Rockford, N.A., Creditors-Appellees
Court of Appeals for the Seventh Circuit
1Opinion of the Court
EASTERBROOK, Circuit Judge.
Two bankruptcy appeals present a common question: whether a liar may obtain a discharge in bankruptcy by showing that the victim did not do enough to nose out the truth. Debts attributable to fraud may not be discharged, 11 U.S.C. § 523(a)(2)(A), and intentional deceit concerning a material proposition is fraud whether or not a more-alert target would have smelled a rat. Victims of intentional torts need not take special precautions.
The first transaction occurred in December 1987. John and Deborah Mayer jointly borrowed more than $135,000 to purchase the Bess Hotel,…
2Cases cited37 opinions
- Grogan v. GarnerSupreme Court of the United States · 1991
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- Union Bank v. WolasSupreme Court of the United States · 1991
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