Supreme Court Rules 9-0 That Bankruptcy Filers Can't Avoid Debt Incurred by Another's Fraud

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Supreme Court Rules 9-0 That Bankruptcy Filers Can't Avoid Debt Incurred by Another's Fraud
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The Supreme Courtly ruled Kate Bartenwerfer’s lack of knowledge of her partner’s fraud in a home sale did not protect her from owing a legal judgment.

"Innocent people are sometimes held liable for fraud they did not personally commit, and, if they declare bankruptcy, [the bankruptcy code] bars discharge of that debt," Barrett wrote."So it is for Bartenwerfer, and we are sensitive to the hardship she faces."

"We have been working on this since 2008, and now finally have been vindicated and justice served for all victims of fraud, Brayer said."Hence, I am a happy girl today." Bartenwerfer, and her then-boyfriend David Bartenwerfer, jointly bought a house in San Francisco in 2005 and planned to remodel it and sell it for a profit, the ruling noted.

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