Legal Question in Bankruptcy in Georgia

Actual Fraud

Short story, debtor commited ID Theft and opened an account in family members name, served jail time and was sued by the US AG. This account was not included in that suit for some reason. We had her served with garnishment papers and she responded with a chapter 7. Since she commited actual fraud on this account it would seem to me that it can not be discharged under her bankruptcy, am I wrong?

TITLE 11 CHAPTER 5 SUBCHAPTER II � 523

(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt�

� 523. Exceptions to discharge

(2) for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by�

(A) false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor�s or an insider�s financial condition;


Asked on 5/21/07, 8:13 pm

3 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Actual Fraud

If there was fraud, you may be able to prevent dischareg, but you must make a timely filing to object to discharge, or you will lose what options you may have. You need to hire a creditor's bankruptcy lawyer to see if you have a claim.

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Answered on 5/21/07, 10:57 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Actual Fraud

Since you will need to file a complaint in the bankruptcy case anyway, you may as well contact a Bankruptcy lawyer to review all facts and provide a better response that you can get here.

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Answered on 5/21/07, 8:30 pm
Robert Thompson J. Robert Thompson Attorney

Re: Actual Fraud

You are correct, but you must take active steps (a motion to deny discharge) to protect your rights. Consult a bankruptcy attorney ASAP.

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Answered on 5/21/07, 9:09 pm


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