In a case currently seeking to come before the United States
Supreme Court, the Court is being asked to clarify a provision in
the Bankruptcy Code that prevents fraud claims from being
discharged in bankruptcy.
The case is Husky International Electronics, Inc. v. Daniel Lee Ritz, Jr.
Some sections of the Code deal with: intentional misrepresentation,
deliberate fraudulent-transfer schemes, some require a showing of a
specific “willful and malicious injury” which requires a higher showing of
“actual intent to cause injury”, while other sections require only a showing
of a more general “actual fraud” which requires only a showing of intent to
benefit oneself through a fraudulent scheme.
There is also a more general provision in the Code which imposes an absolute
bar to discharge against anyone who has fraudulently transferred away assets
within one year before filing a bankruptcy.
Sadly this provision does not apply to one who wrongfully obtains money
through a fraudulent-transfer scheme and then seeks to evade liability
If you have been harmed by fraud, seek the assistance of a bankruptcy professional.
call me at 570-826-0481
C. Stephen Gurdin, Jr., Esq.