Husky International Electronics, Inc. v. Ritz

The Bankruptcy Code exempts from discharge “any debt ... for money, property, [or] services ... to the extent obtained by ... false pretenses, a false representation, or actual fraud.” 11 U.S.C. § 523(a)(2)(A) (emphasis added). The Court holds that “actual fraud” encompasses fraudulent transfer schemes effectuated without any false representation to a creditor and concludes that a debt for goods may “sometimes” be “obtained by” a fraudulent transfer scheme. Ante, at 1585-1586, 1589. Because § 523(a)(2)(A) does not apply so expansively, I respectfully dissent.

I

In my view, “actual fraud”,…