LexisNexis Emerging Issues Analysis, 2018 Emerging Issues 8648

In a 9—0 decision authored by Justice Sotomayor, the Supreme Court of the United States holds that a debtor’s statement about a single asset can be a “statement respecting the debtor’s financial condition” under Bankruptcy Code section 523(a)(2), which in turn means that creditors will need to satisfy the additional requirements of section 523(a)(2)(B) in order to successfully except a claim arising from such statement from the debtor’s discharge.

This commentary analyzes the holding and implications of the Lamar, Archer opinion.