11 U.S.C. § 523

Section 523(a)(2)(B) does not require a creditor to produce the written financial statement at trial to satisfy its writing requirement.

Kaufman v. Tallant (In Re Tallant) · filed 1997-04-15(a)(2)(B)

Nothing in the statute or the legislative history indicates this phrase requires the creditor to produce the writing itself at trial.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a materially false written financial statement to prevent discharge of a debt.

First Natl. Bank v. Pontow · filed 1997-04-17(a)(2)(B)

To bar a discharge, the creditor must prove each of the foregoing elements by a preponderance of the evidence. ... We agree with the district court that the reasonable reliance findings are not clearly erroneous and therefore also do not reach the lack of intent issue.

Section 523(a)(2)(B) requires a creditor to prove actual and reasonable reliance on a false written financial statement to prevent discharge.

First National Bank of Olathe, Kansas v. Thomas M. Pontow Ann M. Pontow · filed 1997-04-17(a)(2)(B)

We agree with the district court that the reasonable reliance findings are not clearly erroneous and therefore also do not reach the lack of intent issue.

Section 523(a)(2)(B) requires a written financial statement; a creditor’s computer record of a debtor’s oral answers does not qualify when the debtor neither saw nor adopted it.

Bellco First Federal v. Kaspar · filed 1997-09-30(a)(2)(B)

A written statement of financial condition does not mean an oral statement converted into an electronic format.

Section 523(a)(2)(B) does not make a debt nondischargeable when an omitted liability would not have affected the creditor’s decision to make the loan.

Town of Hempstead Employees Federal Credit Union v. Bruce (In re Bruce) · filed 1997-11-26(a)(2)(B)

In sum, HEFC has failed to sustain its burden of proof as to several of the elements of Section 523(a)(2)(B) of the Bankruptcy Code. The omission of an immaterial fact which would have no bearing, pro or con, upon the granting of a loan or incurring of a debt, precludes this Court from finding that the debt is nondisehargeable.

Section 523(a)(2) does not except debts induced by oral statements about financial condition from discharge; paragraph (A) excludes such statements, and paragraph (B) requires a writing.

Caolo v. McGovern (In Re McGovern) · filed 1997-12-12(a)(2)

Therefore, unless excepted from discharge by some provision of Section 523 other than subsection (a)(2)(A), any debt induced through the use of false or fraudulent statements regarding financial condition is dischargeable. Such provision does exist-in the form of subsection (a)(2)(B)~but only for statements “in writing”.

Section 523(a)(2)(B) requires a creditor to prove actual and reasonable reliance on a written financial statement to except the resulting debt from discharge.

Womens Business Initiative Corp. v. Moore (In re Moore) · filed 1998-01-27(a)(2)(B)

There was no reliance at all by WBIC — reasonable or otherwise — upon the financial statement. ... Because of the failure to show not only reasonable reliance but actual reliance, § 523(a)(2)(B) has not been proven against Mr. Moore.

Section 523(a)(2)(B) does not require a lender to investigate a debtor’s financial statement when no warning signs suggest it is false.

Huntington National Bank v. Perk (In Re Perk) · filed 1998-03-20(a)(2)(B)

The lack of any red flags points to the conclusion that the Bank did not have a duty to investigate the truth of the Debtor’s assertions in his Financial Statement. ... Taking into account the totality of the circumstances, it is the conclusion of the Court that the Bank’s reliance on the Debtor’s Financial Statement in August and September of 1994 was reasonable. The Court further concludes that the other elements of Section 523(a)(2)(B) non-dischargeability have been met, or are not in dispute. Therefore, the Court concludes that the debt owed to the Bank is non-dischargeable pursuant to Section 523(a)(2)(B).

Section 523(a)(2)(B) excepts a debt from discharge when it was obtained through a materially false written statement about the debtor’s financial condition, on which the creditor reasonably relied and which the debtor made with intent to deceive.

In Re: Richard A. Steen, Debtor. Mary Brooks v. Steen · filed 1998-04-07(a)(2)(B)

Material misrepresentations, for purposes of § 523(a)(2)(B), are defined as "substantial inaccuracies of the type which would generally affect a lender's or guarantor's decision." ... The bankruptcy court clearly erred in finding that Steen made no material misrepresentations on his credit application. ... The district court erred, however, in making independent findings as to reasonable reliance and intent to deceive, the other elements of Brooks' nondischargeability claim under 11 U.S.C. § 523(a)(2)(B). Those findings must be made in the first instance by the bankruptcy court.

Section 523(a)(2)(B) excepts a debt from discharge when the debtor intentionally provides a materially false written financial statement on which the creditor reasonably relies.

Consumer United Capital Corp. v. Straughter (In Re Straughter) · filed 1998-04-13(a)(2)(B)

There was sufficient evidence to find the debt nondischargeable as to Mr. Straughter under § 523(a)(2)(B). His financial statement, Exhibit P3, which was provided to CUCC to support his request for a loan was materially false and misleading.

Section 523(a)(2)(B) requires a creditor’s reliance on a written statement about financial condition to be reasonable.

Beneficial Mortgage Co. of Ohio v. Rollman (In Re Rollman) · filed 1998-04-07(a)(2)(B)

Section 523(a)(2)(B) expressly provides that the creditor’s reliance must have been reasonable.

Section 523(a)(2)(B) does not require the debtor to sign a written financial statement, but the debtor must affirm it in some respect.

Fleming Companies, Inc. v. Eckert (In Re Eckert) · filed 1998-04-16(a)(2)(B)

Although it is now generally accepted that a debtor need not sign a document in order to satisfy the writing requirement of § 523(a)(2)(B), the debtor must affirm the writing in some respect.

Section 523(a)(2)(B) requires an assignee seeking to except a debt from discharge to show that the assignor reasonably relied on the debtor’s false representation and that the assignee relied on it when taking the assignment.

Tompkins & McMaster v. Whitenack (In Re Whitenack) · filed 1998-05-29(a)(2)(B)

A creditor to whom a Debtor’s obligation is assigned, must demonstrate that not only did the assignor reasonably rely on the Debtor’s false representation, but that it also relied on the false representations in deciding to receive the assignment.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a debtor’s written financial statement; reliance on a stale statement despite apparent inaccuracies and without further investigation does not satisfy that requirement.

Karve Family Ltd. Partnership v. Mowji (In Re Mowji) · filed 1998-08-03(a)(2)(B)

Plaintiffs failure to conduct a further investigation of Defendant’s representations on the financial statement despite the existence of some inaccuracies, and Plaintiffs reliance on a stale financial statement, establishes that Plaintiffs reliance was not reasonable. Accordingly, the Court finds that Plaintiff has failed to prove the third element of § 523(a)(2)(B).

Section 523(a)(2)(B)(iii) requires a creditor to prove actual and reasonable reliance on a debtor’s materially false financial statement.

First National Bank v. Sansom (In Re Sansom) · filed 1998-08-25(a)(2)(B)(iii)

In this case, FNB must show that it actually relied upon the materially false statements of the debtor, and that such reliance was reasonable. The court finds that the bank did not establish actual reliance. But even if FNB had shown actual reliance, its reliance could not have been reasonable.

Section 523(a)(2)(B) does not require a creditor to prove additional loss when a fraudulent written financial statement induces a refinancing or extension of credit.

In Re Gary Oliver Campbell, Debtor. Marvin I. Wolf, Individually and as Trustee of the Samuel Wolf Trust, and Augusta Wo · filed 1998-11-04(a)(2)(B)

A contractual "refinancing" or "extension of credit" is sufficient without showing further damage. A creditor need not also show that he could have collected on the loan prior to the bankruptcy but for the new extension of credit.

Section 523(a)(2)(A) does not except a debt from discharge based on an unwritten representation about the debtor’s ability to pay.

Desert Palace, Inc. v. Baumblit (In Re Baumblit) · filed 1999-01-20(a)(2)(A)

Sections 523(a)(2)(A) and 523(a)(2)(B) clearly preclude reliance on unwritten representations respecting a debtor’s financial condition as a basis for nondischargeability under section 523(a)(2)(A).

Section 523(a)(2)(B) does not treat a promise to pay from a particular source or an oral personal guaranty as a statement respecting financial condition.

Weiss v. Alicea (In Re Alicea) · filed 1999-02-22(a)(2)(B)

Returning to the allegations in the first claim, Alicea’s fraudulent misrepresentation that his affiliates would pay the plaintiffs legal fees from the closing proceeds does not relate to their financial condition. Nor does his oral personal guaranty.

Section 523(a)(2)(B) requires reasonable reliance on a debtor’s written financial statement; relying on a right to investigate its accuracy after accepting a settlement does not satisfy that requirement when the creditor already doubts the statement’s truth.

Shaw Steel, Inc. v. Morris (In Re Morris) · filed 1999-02-25(a)(2)(B)

This is not reasonable reliance upon the truth of the Debtor’s Affidavit; this is merely actual reliance on the right to subsequently investigate and invoke alternative remedies. The Court finds this reliance unreasonable in light of all the prior problems Shaw Steel had had with representations made by the Debtor respecting O.L. Anderson’s financial condition.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a debtor’s written financial statement to except the debt from discharge.

Fifth Third Bank v. Collier (In Re Collier) · filed 1999-03-05(a)(2)(B)

Based on the Bank’s conduct and the Bank’s failure to meet its burden of proof, the Court finds that the Bank did not reasonably rely on Debtor’s personal financial statement when making the Loan.

Section 523(a)(2)(B) requires reasonable reliance on a written financial statement; an obviously incomplete and ambiguous statement requires further inquiry and verification.

Guess v. Keim (In Re Keim) · filed 1999-08-06(a)(2)(B)

We agree with the bankruptcy court’s decision. The debtors’ purported financial statement does not amount to the sort of financial statement that any creditor could reasonably rely upon without some further inquiry and verification.

Section 523(a)(2)(B) does not except a debt from discharge when a creditor distrusts the debtor’s written financial statement and cannot justifiably rely on it.

Shaw Steel, Inc. v. Morris · filed 1999-10-08(a)(2)(B)

However, whether or not Shaw Steel was required to conduct a prior investigation, it was not entitled to go into the deal with eyes wide shut and stib gain the benefit of the § 523(a)(2)(B) exception.

Section 523(a)(2)(B)(iv) can be satisfied when a debtor displays and discusses a false financial statement in a creditor’s presence with intent to deceive, even without handing the creditor a copy.

Smith v. Lachter (In Re Smith) · filed 1999-12-09(a)(2)(B)(iv)

For purposes of § 523, a publication occurs whenever a debtor provides or displays a financial statement under circumstances which make it clearly visible to a possible lender, and discusses the terms of the statement with a third party in the lender’s presence, intending to deceive both.' It is immaterial whether a copy of the statement was actually handed to the Plaintiff.

Section 523(a)(2)(B)(iii) requires actual reliance on a written financial statement before a debt can be excepted from discharge.

Salim Investments v. Benton · filed 2000-01-28(a)(2)(B)(iii)

Reasonable reliance requires actual reliance.

Section 523(a)(2)(B) does not require a creditor to advance additional funds for a renewal of credit to be excepted from discharge.

Burbank v. Capelli (In Re Capelli) · filed 2001-04-17(a)(2)(B)

The fact that new funds were not advanced does not change that result. The plain reading of the statute does not require the procurement of additional funds.

Section 523(a)(2)(B) does not require proof that a false financial statement caused the creditor’s loss.

Global Express Money Orders, Inc. v. Davis (In Re Davis) · filed 2001-05-07(a)(2)(B)

Although this court does not find causation a necessary or proper element of the false financial statement issue, my findings make clear that debtor’s false financial statement was a proximate cause of Global’s loss.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a debtor’s financial statement.

Keddington v. Rodas · filed 2001-05-29(a)(2)(B)

The bankruptcy court did not clearly err by finding that Keddington failed to establish reasonable reliance on Rodas’s financial statements, as required by 11 U.S.C. § 523(a)(2)(B), because no financial statements were entered into evidence.

Section 523(a)(2)(B) requires reasonable reliance on a materially false written financial statement; stale financial data can defeat reasonable reliance.

Agribank, FCB v. Gordon (In Re Gordon) · filed 2001-06-15(a)(2)(B)

Accordingly, the application was, on its face, lacking current information, and a reasonable creditor would not have relied on such stale financial data. Plaintiff has not established its Section 523(a)(2)(B) claim as to the second loan application, and Debtor’s discharge as to that debt will be granted.

Section 523(a)(2)(B) excepts an entire renewed note from discharge when the debtor obtains the renewal through a false financial statement that satisfies the section’s other requirements.

First National Bank of Byers, N.A. v. Slonaker (In Re Slonaker) · filed 2001-07-13(a)(2)(B)

Because the renewal of the entire note was obtained by ROS’s false financial statement, the entire note is excepted from discharge.

Section 523(a)(2)(B)(iii) requires a creditor to investigate glaring inaccuracies in a debtor’s financial statement before its reliance can be considered reasonable.

Insouth Bank v. Michael (In Re Michael) · filed 2001-08-09(a)(2)(B)(iii)

These facts, known by the plaintiff, compel a commercial creditor to make some threshold and independent inquiry or investigation into such glaring omissions and inaccuracies, including the debtors’ large annual income, in order to legitimately assert reasonable reliance arising out of a false financial statement under section 523(a)(2)(B)(iii) when such “red flags” are present.

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge to prove reasonable reliance on a written financial statement; warning signs may require further investigation.

Lease Corp. of America v. Harloff (In Re Harloff) · filed 2001-08-30(a)(2)(B)

This Court is satisfied that LCA did not satisfy its burden, and that its reliance on the Lease Application was not reasonable. Therefore, Count I pursuant to 11 U.S.C. § 523(a)(2)(B) shall be dismissed with prejudice.

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge based on a false written statement of financial condition to prove reasonable reliance.

Midwest Bank & Trust Co. v. Baratta (In Re Baratta) · filed 2001-11-15(a)(2)(B)

This being the case, this Court is satisfied that Midwest has failed to establish with the requisite degree of proof reasonable reliance, an indispensable element of the exception set forth in § 523(a)(2)(B). For this reason Midwest cannot prevail on its claim for nondischargeability.

Section 523(a)(2)(B) makes a debt obtained through a materially false written financial statement nondischargeable when the creditor reasonably relies on it and the debtor intends to deceive.

Heritage Bank of St. Joseph v. Bohr · filed 2001-11-28(a)(2)(B)

In summary, the Bank has met its burden to prove every element of § 523(a)(2)(B). The Debtors made a false statement in writing to obtain credit from the Bank. There is no question that the Debtors knew the financial statements were false. The Debtors, by their own admissions, knew that they did not own the real estate and that the Bank was relying on the financial statements in making its decision to extend credit. The Bank reasonably relied on the false financial statements — there was no “red flag” or warning given to the Bank that imposed a duty to investigate further.

Section 523(a)(2)(A) does not cover a debtor’s representation about ability to repay because it concerns the debtor’s financial condition.

Commercial Money Center, Inc. v. Sacco (In Re Sacco) · filed 2001-12-11(a)(2)(A)

As an initial matter, the Court holds that CMC cannot prevail under § 523(a)(2)(A) with respect to any representation that the debtor may have made regarding his ability to repay the Lease obligation.

Section 523(a)(2)(B) requires intent to defraud for a debt to be excepted from discharge.

Tustin Thrift & Loan Ass'n v. Peyton · filed 2001-12-27(a)(2)(B)

Because the Peytons disclosed information about their other loan obligation and did not make any misrepresentations to the original lender, the bankruptcy court did not err by finding that the Peytons lacked the requisite intent to defraud Tustin.

Section 523(a)(2)(B) requires a materially false written statement about the debtor’s financial condition, reasonable creditor reliance, and intent to deceive.

Northeast Credit Union v. Butterworth (In Re Butterworth) · filed 2002-05-28(a)(2)(B)

To satisfy its burden under § 523(a)(2)(B), the Plaintiff must prove that there is a statement, in writing, that it is materially false concerning the Debtor’s financial condition, that Northeast reasonably relied on this false statement and that the Debtor made the false statement with the intent to deceive.

Section 523(a)(2)(B) can make a debt nondischargeable when a debtor signs a false financial statement with reckless disregard for its accuracy.

Merchants Bank of California v. Chai Cho Oh (In Re Chai Cho Oh) · filed 2002-06-07(a)(2)(B)

Instead, preferring to know as little as possible about a transaction in which he really did not want to participate, the Debtor simply signed whatever was put in front of him without any regard for its truth or falsity. A debtor cannot escape liability under section 528(a)(2)(B) by firmly putting his head in the sand and later claiming not to have known of the falsity of representations that were made on his behalf while his head was covered. Such conduct is sufficiently reckless to give rise to nondis-chargeable liability under section 523(a)(2)(B).

Section 523(a)(2)(B) does not categorically require a creditor to investigate a debtor’s financial statement for its reliance to be reasonable, even when the parties have had no prior dealings.

National Union Fire Insurance Co. of Pittsburgh v. Owenby · filed 2002-07-15(a)(2)(B)

Finally, although Owenby urges us to rule that it is unreasonable as a matter of law to rely on a submitted statement of finances without conducting an independent investigation when a lender has had no prior dealings with a potential borrower, this Circuit has never adopted such a bright line rule and has specifically disfavored it. ... We do not adopt it now.

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge based on a written statement about the debtor's financial condition to prove reasonable reliance on that statement.

In Re McCleary · filed 2002-08-28(a)(2)(B)

Based on all of these facts, this Court must conclude that the Bank has failed to establish reasonable reliance as defined in § 523(a)(2)(B).

Section 523(a)(2)(A) excludes a debtor’s failure to disclose financial distress when that silence implies a statement about financial condition.

Gadtke v. Bren (In Re Bren) · filed 2002-10-22(a)(2)(A)

Similarly, Bren’s failure to disclose his precarious financial situation is at best an implied state of his financial condition and excluded from the purview of § 523(a)(2)(A).

Section 523(a)(2)(B) treats a debtor’s failure to disclose pledged assets as a material misrepresentation when the lender would have declined the loan had it known the assets were pledged.

Kavoussi v. Johnson & Johnson Finance Corp. · filed 2003-03-07(a)(2)(B)

The bankruptcy court did not clearly err in determining that the debt was nondischargeable under 11 U.S.C. § 523(a)(2)(B). First, Dr. Kavoussi’s failure to disclose that a loan from his parents for $220,000 was secured by $6.8 million in assets was a material misrepresentation; JJFC submitted affidavits that they would not have tendered the loan had they known that his assets were pledged.

Section 523(a)(2)(A) excludes statements about a debtor’s or insider’s overall financial responsibility from its discharge exception.

Citik Ka Wah Bank Ltd. New York Branch v. Wong (In Re Wong) · filed 2003-03-25(a)(2)(A)

Narrowly construing the term “financial condition” to include only statements with respect to an entity’s net worth, ability to generate assets or overall financial responsibility, I find that the statement that CEI was current with its existing third-party credit facility goes directly toward financial responsibility: whether or not CEI was paying debts as they become due. Accordingly, as stated above, the misrepresentation regarding CEI’s status with another credit facility is not actionable under subsection 523(a)(2)(A). Statements respecting a debtor’s or an insider’s financial condition are specifically carved out of subsection 523(a)(2)(A).

Section 523(a)(2)(B)(iii) requires a creditor to prove reasonable reliance on a false financial statement; relying on a CPA letter despite obvious errors in the statement did not meet that requirement.

International Fidelity Insurance v. Baxter (In Re Baxter) · filed 2003-05-29(a)(2)(B)(iii)

Plaintiff failed to prove that it reasonably relied upon the CPA’s letter to determine that no further review of the financial statement was necessary. Under Ms. Peterson’s own admission, the altered financial statement contained obvious errors. Plaintiff would have had to have shown that it is the standard in the industry to rely on a CPA’s letter, rather than review the entire financial statement. Since Plaintiff only proved its own company policy, it did not prove that its reliance was reasonable.

Section 523(a)(2)(B) excepts a debt from discharge when a creditor reasonably relied on a materially false written financial statement the debtor issued with intent to deceive.

Union Planters Bank, N.A. v. Martin (In Re Martin) · filed 2003-08-28(a)(2)(B)

Because the Plaintiff has carried its burden of proof on every element in Section 523(a)(2)(B), the Court finds that the Complaint should be granted and the debt should be excepted from the Debtor’s discharge.

Section 523(a)(2)(A) does not except a debt from discharge based on false representations about the debtor’s financial condition.

Baker v. Sharpe (In Re Sharpe) · filed 2003-09-28(a)(2)(A)

For these reasons, the court concludes that it cannot provide relief to Ms. Baker under section 523(a)(2)(A). Mr. Sharpe’s representations, though false, all concerned his financial condition, which fall under section 523(a)(2)(B), and which requires a writing to accord relief.

Section 523(a)(2)(B) requires a statement about a debtor’s financial condition to be in writing before it can support an exception to discharge.

Greater Pittsburgh Police Federal Credit Union v. Hilley (In Re Hilley) · filed 2003-12-04(a)(2)(B)

Furthermore, the representation made by a debtor upon which a creditor predicates an action under § 523(a)(2)(A) cannot, consistent with the express language of said provision, pertain to said debtor’s financial condition; representations regarding a debtor’s financial condition are only actionable under § 523(a)(2)(B), and then only if the same are made in writing.

Section 523(a)(2)(B) treats a financial statement as materially false when it omits personal guaranties that pose a significant risk of liability to the debtor.

Union Planters Bank National Ass'n v. Martin (In Re Martin) · filed 2004-03-16(a)(2)(B)

In addition, the evidence supports the conclusion that the guaranties represented a significant risk of liability to Martin in November 2001, and their omission rendered the Financial Statement materially false.

Section 523(a)(6) cannot be used to avoid the writing requirement for false statements about a debtor’s financial condition under § 523(a)(2)(B).

Gulevsky, Shmuel E. v. Berkson, Blake · filed 2004-03-31(a)(6)

The few other courts that have been confronted with the dischargeability of false oral statements of financial con- dition are unanimous that § 523(a)(6) cannot be used to circumvent § 523(a)(2)(B)’s writing requirement. ... We agree that creditors should not be able to use § 523(a)(6) in that way, in no small part because of the Pandora’s box that would be opened in the absence of § 523(a)(2)(B)’s writing require- ment.

Section 523(a)(6) cannot be used to make a debt arising from an oral misrepresentation of the debtor’s financial condition nondischargeable when § 523(a)(2)(B) requires a writing.

In Re: Shmuel E. Gulevsky, Debtor. Blake Berkson v. Gulevsky · filed 2004-03-31(a)(6)

The few other courts that have been confronted with the dischargeability of false oral statements of financial condition are unanimous that § 523(a)(6) cannot be used to circumvent § 523(a)(2)(B)’s writing requirement. ... We agree that creditors should not be able to use § 523(a)(6) in that way, in no small part because of the Pandora’s box that would be opened in the absence of § 523(a)(2)(B)’s writing requirement.

Section 523(a)(2)(B) covers an extension or renewal of credit obtained through a false written financial statement, but mere deferral of collection does not qualify.

Community First Bank v. Rigg (In Re Rigg) · filed 2004-06-17(a)(2)(B)

Section 523 applies to an extension, renewal, or refinancing of credit. The language does not appear sufficiently expansive to cover a mere deferral of collection based upon the asserted false financial statement.

Section 523(a)(2)(B) does not except a debt based on a bad check from discharge because a check is not a statement about the debtor’s financial condition.

Nite Lite Signs & Balloons, Inc. v. Philopulos (In Re Philopulos) · filed 2004-08-04(a)(2)(B)

Following the reasoning of Scarlata, a bad check is not a statement of any kind, much less a materially false statement about a debtor’s financial condition. ... Nite Lite has therefore not satisfied the elements of dischargeability under § 523(a)(2)(B).

Section 523(a)(2)(B) does not treat a check as a statement in writing.

Gould v. Cecil (In Re Cecil) · filed 2004-08-16(a)(2)(B)

However, the overwhelming weight of authority holds that a check is not a statement in writing for purposes of § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge to prove reasonable reliance on a materially false written financial statement and the debtor’s intent to deceive.

Blue Ridge Bank & Trust v. Cascio (In Re Cascio) · filed 2004-12-20(a)(2)(B)

For the foregoing reasons, the Court finds that while Cascio’s Financial Statement was materially false, the Bank did not prove by a preponderance of the evidence that it reasonably relied upon it or that Caseio presented it to the Bank with an intent to deceive. Accordingly, Cascio’s obligation to the Bank is not excepted from discharge.

Section 523(a)(2)(B) excepts a debt from discharge when the debtor submits a materially false written statement about her financial condition with intent to deceive and the creditor reasonably relies on it.

Master Financial, Inc. v. DeJulio (In Re DeJulio) · filed 2005-01-10(a)(2)(B)

When Defendant submitted a loan application which significantly overstated her income and assets, she submitted a materially false financial statement. Plaintiff reasonably relied on the loan application when it extended credit to Defendant. Defendant submitted the loan application with the intent to deceive Plaintiff. The Court will except Defendant’s debt to Plaintiff under 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge based on a false written financial statement to prove actual and reasonable reliance.

First National Bank of Stuttgart v. Owens (In Re Owens) · filed 2005-03-07(a)(2)(B)

The Bank has not established by a preponderance of the evidence that it actually or reasonably relied on the Debtor’s 2002 financial statement.

Section 523(a)(2)(A) excludes statements respecting a debtor’s financial condition, including a loan application disclosing financial obligations.

Banknorth, N.A. v. Sanders (In Re Cassar) · filed 2005-05-02(a)(2)(A)

The loan application required the Defendant to disclose, in writing, both her business and personal financial obligations. It is, in essence, a financial statement of the Defendant. Section 523(a)(2)(A) excepts from its scope “a statement respecting the debtor’s or an insider’s financial condition.” 11 U.S.C. § 523(a)(2)(A). The loan application is clearly within this exception. Count II is denied.

Section 523(a)(2)(B) requires a creditor to prove actual and reasonable reliance on the debtor’s financial information.

First National Bank v. Cribbs (In Re Cribbs) · filed 2005-06-24(a)(2)(B)

To establish a claim under § 523(a)(2)(B), the Bank must show rebanee in fact, i.e., that it actually relied on the financial information, and that such reliance was reasonable.

Section 523(a)(2)(B) requires proof of reasonable reliance; a state court judgment finding fraud alone does not establish that element.

Jacobus v. Binns (In Re Binns) · filed 2005-07-21(a)(2)(B)

Thus, in the absence of a definitive statement in Illinois law on the degree of reliance required for fraud, the Circuit Court’s bald finding of fraud would be insufficient to establish all of the elements of § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor to prove that the debtor intended to deceive through a written financial statement.

New Equip Leasing v. Hudgens, James · filed 2005-08-26(a)(2)(B)

Ultimately, however, we reject NEL’s argument that § 523(a)(2)(B) precludes discharge because the bankruptcy court’s conclusion that NEL did not prove by a preponderance of the evidence that Hudgens acted with the requisite intent to deceive was not clearly erroneous.

Section 523(a)(2)(A) requires a creditor seeking to except a debt from discharge to prove a knowing or reckless material misrepresentation and intent to deceive.

Peoples State Bank v. Crim · filed 2005-09-07(a)(2)(A)

Crim’s affirmative representations in this case were all made at the time the loan was procured, and any omissions at the time the draws were obtained were apparently not material to the bank, given the approval process. Therefore, there is no error in the bankruptcy court’s finding that Crim did not obtain money through a material misrepresentation that he knew was false or made with gross recklessness as to its truth.

Section 523(a)(2)(B) requires a creditor seeking to except a debt based on a false written financial statement to prove reasonable reliance on the statement.

Middlesex Savings Bank v. Flaherty (In Re Flaherty) · filed 2005-10-13(a)(2)(B)

Although the Court is persuaded that Bank actually relied on the Debtor’s false representations and false financial statement, the Court finds that the Bank did not reasonably rely on the Debtor’s statements.

Section 523(a)(2)(B) does not except a loan from discharge based on a written statement about an expected inheritance made only after the loan was advanced.

Area Community Credit Union v. Tyrrell (In Re Tyrrell) · filed 2005-11-30(a)(2)(B)

This loan therefore falls outside the purview of section 523(a)(2)(B) because it was not obtained by use of a written statement regarding the inheritance until after the loan had been given.

Section 523(a)(2)(B) requires proof of every element, including a materially false written statement and reasonable creditor reliance.

First State Bank v. Braathen (In Re Braathen) · filed 2006-02-01(a)(2)(B)

However, all of the elements must be established to succeed on a claim under section 523(a)(2)(B), and the Bank has not established material falsity or reasonable reliance. The Bank’s claim under section 523(a)(2)(B) therefore fails.

Section 523(a)(2)(B) requires a false written statement to concern the debtor’s financial condition; a statement about a loan’s purpose does not suffice.

Cnty v. Cook · filed 2006-04-03(a)(2)(B)

Count Two of the complaint does state that the Debtor made materially false written statements, but indicates that these false statements related to the purpose of the loan, not to the financial condition of the Debtor. Count Two of the complaint is legally insufficient.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a materially false written financial statement; the ordinary diligence needed to establish reasonable reliance depends on the circumstances.

In Re: Cribbs v. · filed 2006-07-07(a)(2)(B)

W hat constitutes ordinary diligence sufficient to support a finding of reasonable reliance is to be determined according to the particular facts of each case.

Section 523(a)(2) requires proof of a fraudulent representation or a materially false written statement about the debtor’s financial condition; poor contract performance alone does not establish either ground.

Keene v. Mugford (In re Mugford) · filed 2006-07-28(a)(2)(A), (a)(2)(B)

For dischargeability purposes, however, the issue is not whether he failed to perform but rather whether he falsely presented himself to them as capable of performing and intending to do so when he entered into the Contract. ... The Court has searched the trial record without success for any written statement respecting the Debtor’s financial condition furnished to the Plaintiffs by the Debtor (much less one that is materially false in any respect).

Section 523(a)(2)(B) excepts a debt from discharge when the debtor obtains credit through a materially false written statement about financial condition that the creditor reasonably relies on and the debtor makes with intent to deceive.

Post Road Partners LLC v. Walters (In re Walters) · filed 2006-08-28(a)(2)(B)

In order to except a debt from discharge pursuant to section 523(a)(2)(B), the Plaintiff must demonstrate that the Defendant obtained money, property, services, or an extension, renewal, or refinancing of credit, by use of a statement in writing that is materially false respecting the Defendant’s financial condition, on which the Plaintiff reasonably relied, and that the Defendant caused to be made or published with intent to deceive. ... In consideration of all of the foregoing, it is the opinion of this court that the Plaintiff has carried its burden of demonstrating that there is no genuine issue as to any material fact and that it is entitled to judgment as a matter of law that the debt the Defendant owes to it in regard to abandoning the Lease, i.e., $90,000.00 for non-payment of rental installments, and $11,180.40 for non-payment of ad valorem taxes, is nondischargeable pursuant to Bankruptcy Code section 523(a)(2)(B).

Section 523(a)(2)(B) requires intent to deceive for a debt arising from a false written financial statement to be nondischargeable, and that intent may be inferred from the circumstances.

In RE McCRAY · filed 2006-07-24(a)(2)(B)

The final element for a determination of non-dischargeability under § 523(a)(2)(B) is the intent to deceive. Such intent may be inferred from the surrounding circumstances.

Section 523(a)(2)(B) requires reasonable reliance on a written financial statement; warning signs that warrant further investigation can make a lender’s reliance unreasonable.

Fahey Bank v. Benton (In Re Benton) · filed 2006-09-06(a)(2)(B)

Under the totality of the circumstances in the instant case, the Court cannot find that the Bank’s reliance on the financial statement was reasonable. ... The Plaintiff having failed to satisfy all of the elements of a cause of action under Section 523(a)(2)(B), the Court must enter judgment in favor of the Debtor and dismiss the Plaintiffs Complaint.

Section 523(a)(2)(B) requires a creditor to prove by a preponderance of the evidence that the debtor made or published the false written statement about financial condition.

American National Bank v. Dalcourt (In Re Dalcourt) · filed 2006-10-06(a)(2)(B)

Bank has failed to prove by a preponderance of the evidence that Alicia Dalc-ourt made or published to Bank a false statement in writing as to her financial condition. Its complaint will be dismissed.

Section 523(a)(2)(B) excepted these FSA loan debts after the court found reasonable reliance on signed financial documents and an intent to deceive.

Arvest Bank v. Green (In Re Green) · filed 2006-10-19(a)(2)(B)

This Court finds that the Plaintiff did in fact rely on the information contained in the financial documents signed by the Defendants, and that its reliance was reasonable. ... In this case, Defendants actions exhibited not only a reckless disregard of the accuracy of the facts, but Mr. Green’s verification of the ownership of certain tracts to Ms. McReynolds over the telephone indicate an intent to deceive at the time the financial statements were signed. This Court finds that the final element has been established. As a result, this Court finds that the debt owed by the Defendants to the Plaintiff in connection with the FSA loans should be excepted from discharge pursuant to 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) excepts a debt from discharge when it was obtained through a materially false written statement about financial condition on which the creditor reasonably relied and that the debtor made with intent to deceive.

Vega v. Mayorga (In Re Mayorga) · filed 2006-10-30(a)(2)(B)

Section 523(a)(2)(B) provides a Chapter 7 discharge does not discharge any individual from any debt to the extent such debt is obtained by the use of a statement in writing (i) that is materially false; (ii) respecting the debtor’s or an insider’s financial condition; (iii) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and (iv) that the debtor caused to be made or published with intent to deceive. ... The Plaintiff has not established any act of the Debtor consistent with the provision.

Section 523(a)(2)(B) excepts a debt from discharge when credit was obtained through a materially false written statement about the debtor’s financial condition, the creditor reasonably relied on it, and the debtor intended to deceive.

In Re Sharp · filed 2007-01-04(a)(2)(B)

In summation, the Court finds that the Creditor has sustained its burden with respect to the statutory requirements of § 523(a)(2)(B). Resultantly, the claim held by the Creditor against the Debtor is, for purposes of bankruptcy law, a nondischargeable debt.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on the debtor’s alleged misrepresentation by a preponderance of the evidence.

Cashco Financial Services, Inc. v. McGee (In Re McGee) · filed 2006-12-06(a)(2)(B)

In this type of installment loan transaction, Cashco was required to present direct proof of its reasonable reliance on Debtor’s alleged misrepresentations by a preponderance of the evidence.

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge based on a false written financial statement to prove reasonable reliance by a preponderance of the evidence.

Twin City Bank v. Harris (In Re Harris) · filed 2007-01-26(a)(2)(B)

The Complaint is DENIED because the Court finds that the Bank did not prove the element of reasonable reliance, as required under 11 U.S.C. § 523(a)(2)(B) by a preponderance of the evidence, as I will explain later in this ruling.

Section 523(a)(2)(B) makes a debt arising from a construction subcontract nondischargeable when the debtor obtains it through a materially false written financial statement that the creditor reasonably relies on and the debtor acts with intent to deceive.

Western Builders of Amarillo, Inc. v. Morrison (In Re Morrison) · filed 2007-02-01(a)(2)(B)

Western Builders is entitled to a judgment of $549,773.63 which is not dischargeable under 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor to prove actual reliance on a written financial statement to except a debt from discharge.

Green Bay Packaging, Inc. v. Oscarson (In Re Oscarson) · filed 2007-03-06(a)(2)(B)

As the court discussed in the section above regarding Fred, Green Bay did not prove actual reliance on the financial statements. Having failed to show actual reliance, Green Bay cannot prevail on its § 523(a)(2)(B) count against Jeff.

Section 523(a)(2)(B) excepts a debt from discharge when the debtor uses a materially false written statement about financial condition that the creditor reasonably relies on and that the debtor made with intent to deceive.

Bayer Employees Federal Credit Union v. Sapp (In Re Sapp) · filed 2007-03-26(a)(2)(B)

Accordingly, the Debtor acted with the requisite intent to deceive Bayer by submitting a credit application that materially misrepresented his gross monthly salary in effort to induce Bayer into extending credit to him. Having established all the required element to prevail on a § 523(a)(2)(B) cause of action to except a debt from discharge by a preponderance of the evidence, the court will enter a final judgement in Bayer’s favor.

Section 523(a)(2)(B) does not treat checks or draws on a line of credit as written statements of financial condition.

Merrill Lynch Business Financial Services, Inc. v. Jeffrey Daprizio & Sportspower Ltd. (In Re Daprizio) · filed 2007-03-27(a)(2)(B)

The signing of checks or making draws on the line of credit, are not written financial statements of the Defendant or Sawgrass as defined under Section 523(a)(2)(B) and does not qualify as a basis for relief under this count.

An accounts receivable listing that lacks sufficient information about financial condition does not qualify as a statement respecting financial condition under § 523(a)(2)(B).

Hopper v. Everett (In Re Everett) · filed 2007-03-20(a)(2)(B)

Thus, the Court concludes that the statement contained insufficient information to qualify as a “statement respecting the debtor’s ... financial condition” under Section 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor to show reasonable reliance on a written statement about financial condition.

GDO Investments, Inc. v. Glasgow (In re Glasgow) · filed 2007-06-07(a)(2)(B)

For all of these reasons, the Court finds that the Plaintiff cannot meet the reasonable reliance standard under Section 523(a)(2)(B), but that there is a genuine issue of material fact as to whether the Plaintiff can meet the justifiable reliance standard under Section 523(a)(2)(A).

Section 523(a)(2)(B) requires a creditor to reasonably rely on a debtor’s written statement about financial condition before the resulting debt can be excepted from discharge.

Community Choice Credit Union v. Forget (In Re Forget) · filed 2008-07-02(a)(2)(B)

The court concludes that Community Choice did not reasonably rely on these statements of income. The credit union would have had to inquire further to determine what it meant that the debtors had “gross” income from self-employment. It would need to know whether taxes, health insurance or other deductions were taken from their income. This information would be especially critical in view of the Forgets’ high costs for debt service, which had risen to $5,028.00 per month by February 2007. The claim under § 523(a)(2)(B) should be dismissed.

Section 523(a)(2)(B) requires the creditor to prove every element of nondischargeability, including the debtor’s intent to deceive.

Cadle Co. v. Orsini (In Re Orsini) · filed 2008-08-11(a)(2)(B)

The bankruptcy court did not clearly err in finding that the Orsinis lacked the requisite intent to deceive. Because Cadle must prove all elements to sustain its claim of non- dischargeability under § 523(a)(2)(B), we need not address the bankruptcy court’s analysis of the other elements.

Section 523(a)(2)(B)’s intent-to-deceive requirement is satisfied by knowledge that a financial statement is false or reckless disregard for its truth.

Rosen's, Inc. v. Ghere (In Re Ghere) · filed 2008-08-29(a)(2)(B)

Knowledge of the falsity of the information or reckless disregard for the truth satisfies the intent element of § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on the debtor’s false statements before the debt can be excepted from discharge.

Tower Credit, Inc. v. Brooks (In Re Brooks) · filed 2008-08-15(a)(2)(B)

For a declaration of nondischarge-ability, section 523(a)(2)(B) requires proof that the creditor reasonably relied on the debtor’s false statements.

Section 523(a)(2)(B) treats a debtor who signs a loan application affirming its accuracy as having adopted its false financial information.

Tower Credit, Inc. v. Touchet (In Re Touchet) · filed 2008-09-30(a)(2)(B)

By signing the application warranting the accuracy and completeness of the information she gave Tower, Touchet adopted the false information and misrepresented her financial condition for the purpose of 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) requires a creditor seeking to except a debt from discharge based on a written financial statement to prove material falsity, reasonable reliance, and intent to deceive by a preponderance of the evidence.

American General Financial Services v. Leavitt (In Re Leavitt) · filed 2008-10-21(a)(2)(B)

In sum, I find that American General did not meet its burden of proving, by a preponderance of the evidence, that the Debtor made a materially false statement regarding his income, that American General reasonably relied on that false statement, or that the Debtor intended to deceive American General.

Section 523(a)(2)(B) can cover a debt arising from a contract to perform services when a materially false financial statement helps secure the contract and the misrepresented financial condition contributes to the default.

Morrison v. Western Builders of Amarillo, Inc. (In Re Morrison) · filed 2009-01-16(a)(2)(B)

The plain language of §523(a)(2) does not require that the transaction be in any particular form. ... The contract with Western Builders enabled Morrison to secure periodic payments—until his company defaulted.

Section 523(a)(2)(B) requires a creditor to reasonably rely on a false financial statement before the resulting debt can be excepted from discharge.

Branch Banking & Trust Co. v. Adam (In Re Adam) · filed 2009-01-29(a)(2)(B)

The debtor admitted that the financial statements he gave to the bank that were used to induce the bank to make a loan to him were false. That is not sufficient for a nondischargeability judgment. The bank must reasonably rely on the false financial statement. In this case, it did not.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a debtor’s written financial statement to except a debt from discharge.

Buckeye Retirement Co. v. Bishop (In Re Bishop) · filed 2009-02-06(a)(2)(B)

This court finds that Plaintiff failed to show that Community Bank reasonably relied on the Consumer Credit Application and Statement of Financial Condition in making Loan 1 and Loan 2 to the Debtor.

Disputes over reasonable reliance and whether a written financial statement was materially false can prevent summary judgment on a § 523(a)(2)(B) claim.

Ohio Carpenters' Pension Fund v. Aerni (In Re Aerni) · filed 2009-03-16(a)(2)(B)

Although Aerni suggests that evidence regarding when the statement was received is enough to grant summary judgment on this matter, there still exists several issues regarding the elements of § 523(a), including reasonableness and whether the statements contained materially false information.

Section 523(a)(2)(B) requires reasonable reliance on a written financial statement; reliance is unreasonable when the creditor knows the statement is inaccurate on its face.

R & R Ready Mix, Inc. v. Freier (In Re Freier) · filed 2009-03-20(a)(2)(B)

As mentioned above, the financial statement was inaccurate on its face in numerous areas and the representatives of R & R knew it. Any reliance they placed upon the financial statement was unreasonable. The finding of non-dischargeability under 11 U.S.C. § 523(a)(2)(B) was clearly erroneous.

Section 523(a)(2)(B) makes a debt nondischargeable when a debtor obtains credit through a materially false written statement about financial condition, made with intent to deceive and reasonably relied on by the creditor.

Regions Bank v. Whisnant (In Re Whisnant) · filed 2009-08-25(a)(2)(B)

In summary, the court finds that the Plaintiff has proved by a preponderance of the evidence that, in order to induce the Plaintiff to loan him money, the Defendant, with the intent to deceive and with reckless indifference, provided the Plaintiff with financial statements and tax returns which were materially false and upon which the Plaintiff reasonably relied. Accordingly, the outstanding debt owed to the Plaintiff by the Defendant for the Purchase Loan is nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) requires a false written statement to except a debt from discharge; allegations or speculation alone are insufficient.

Mitsubishi Motor Sales of Caribbean, Inc. v. Ortiz · filed 2009-09-30(a)(2)(B)

However, the principle is the same, that is, section 523(a)(2)(B) specifically requires the existence of a written false statement in order to except from discharge a debt. Mere allegations or speculations are insufficient to meet the burden under section 523(a)(2)(B).

Section 523(a)(2)(B) excepts a debt from discharge when the debtor intentionally makes materially false statements about income and the creditor reasonably relies on them.

Ward v. Paul Revere Life Insurance (In re Ward) · filed 2009-10-08(a)(2)(B)

The bankruptcy court properly granted summary judgment because Ward failed to raise a triable issue as to whether he intentionally made materially false statements regarding the declared income on which Paul Revere reasonably relied in calculating Ward’s disability payments. See 11 U.S.C. § 523(a)(2)(B) (outlining elements of fraud for exceptions to discharge).

Section 523(a)(2)(B) makes a debt nondischargeable when the debtor obtains money through a materially false written statement about financial condition that the creditor reasonably relies on and that the debtor intends to deceive.

4200 Laclede Corp. v. Green (In Re Green) · filed 2009-10-19(a)(2)(B)

Plaintiff obtained a state court judgment in the amount of $787,757.25, with post-judgment interest that accrued from entry of the judgment through the date of trial in this Court in the amount of $144,515.69, and attorneys’ fees and expenses of $15,949.64 pursuing this adversary proceeding, for a total debt in the amount of $948,222.58 that is nondischargeable pursuant to Section 523(a)(2)(B).

Section 523(a)(2)(B) makes a debt nondischargeable when a debtor obtains credit through a materially false written statement about financial condition, made with intent to deceive, on which the creditor actually and reasonably relies.

Webster Bank, National Ass'n v. Contos (In Re Contos) · filed 2009-10-29(a)(2)(B)

For the foregoing reasons, the Court finds that the debt owed by the Debtors to Webster Bank is non-dischargeable under § 523(a)(2)(B) in the principal sum of $452,322.02 plus $41,438.21 in unpaid interest.

Section 523(a)(2)(B)(iii) requires a creditor to have actually relied on the debtor’s false financial statement to except the debt from discharge.

Alliant Bank v. Baker (In Re Baker) · filed 2009-10-28(a)(2)(B)(iii)

The “reasonable reliance” component of Section 523(a)(2)(B)(iii) requires that the creditor actually rely on the debtor’s statement. ... Here, Plaintiff did not in fact rely on Defendants’ false Financial Statement and thus neither extended nor refinanced Defendants’ loan based on the false statement. Therefore, Plaintiffs claim is dischargeable under 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) excepts a debt from discharge when the creditor reasonably relied on a materially false written financial statement that the debtor published with intent to deceive.

Colorado East Bank & Trust v. McCarthy (In Re McCarthy) · filed 2009-11-30(a)(2)(B)

Based on the totality of the facts, circumstances, and applicable law, the Court concludes that the Bank reasonably relied, to its detriment, on the Debtor’s materially false written financial statement, which the Debtor published with an intent to deceive. Because the Bank has carried its burden of proof on every element in § 523(a)(2)(B), the Court finds that Debt- or’s debt to the Bank should be excepted from the Debtor’s discharge.

Section 523(a)(2) does not bar discharge of a loan debt when the debtor made no false representation to obtain the loan and the creditor did not rely on the debtor’s financial statement.

Wall Street Management & Capital, Inc. v. Crites (In Re Crites) · filed 2009-12-07(a)(2)

Crites did not make any false or deceptive representations in obtaining the loans from Wall Street. Wall Street did not rely upon the Personal Financial Statement in making any loans to BCA. The indebtedness owed by Crites to Wall Street is dischargeable and due to be discharged pursuant to Sections 523(a)(2)(A) and 523(a)(2)(B).

Section 523(a)(2)(B) does not treat unsubstantiated projections of future performance as statements of financial condition.

Douglas v. Kosinski (Kosinski) · filed 2010-03-01(a)(2)(B)

This necessarily means that there must be some historical perspective to the figures contained within the statement, and it follows that a statement that provides unsubstantiated projections of future performance does not constitute a statement of financial condition for purposes of § 523(a)(2).

Section 523(a)(2)(B) excepts a debt from discharge when a creditor reasonably relies on a materially false written statement about the debtor’s financial condition made with intent to deceive.

Holcomb v. New Castle Financial Group, Inc. · filed 2010-04-14(a)(2)(B)

On this record, the evidence was sufficient to support the findings that Holcomb tendered a written financial statement to New Castle,5 respecting his financial condition;6 that the statement was materially false;7 that under all of the circumstances (including his failure to mention his just filed bankruptcy petition) his intent was to deceive New Castle;8 and that New Castle reasonably relied9 upon that statement when it advanced Holcomb credit.

Section 523(a)(2)(B) does not apply to a statement showing the value of only one asset rather than an entity’s overall financial condition.

Danvers Savings Bank v. Alexander (In Re Alexander) · filed 2010-03-30(a)(2)(B)

The Cooperative Statement reflects the value of only one asset belonging to ADS; it cannot be said to reflect ADS’s—much less Max-yne’s—overall financial health. Consequently paragraph (a)(2)(B) does not apply to this alleged misrepresentation.

Section 523(a)(2)(A)’s financial condition exception does not cover statements about title encumbrances that neither list the debtor’s obligations nor document the debtor’s ability to pay creditors.

Livingston v. Transnation Title Insurance Co · filed 2010-04-09(a)(2)(A)

In the closing documents, the Livingstons represented that they were unaware of any other encumbrances on the record title. These declarations did not list the Livingstons’ financial obligations or document their ability to pay their creditors. They were not statements respecting their “financial condition.”

Section 523(a)(2)(B) can except a loan debt when the creditor reasonably relied on a false financial statement.

Callaway Bank v. Asbury (In Re Asbury) · filed 2010-09-15(a)(2)(B)

The Court finds that Callaway’s reliance in this case was reasonable. The Court, finding no genuine issues of material fact, finds that summary judgment is proper and that Kevin’s debt to Callaway is nondischargeable under § 523(a)(2)(B).

A statement about encumbrances on property pledged as collateral concerns the debtor’s financial condition and cannot support a nondischargeability claim under § 523(a)(2)(A).

Material Products International, Ltd. v. Ortiz (In Re Ortiz) · filed 2010-08-27(a)(2)(A)

As the Defendants have demonstrated, statements regarding a debtor’s real property and encumbrances thereto would necessarily be construed as a statement concerning the debtor’s financial condition under Section 523(a)(2)(B). ... Therefore, as a matter of law, taking all Plaintiffs allegations in the Complaint as true, Plaintiff cannot show that the claim is non-dischargeable under § 523(a)(2)(A) as it alleges, and the Defendants are entitled to judgment on the pleadings denying the Plaintiffs cause of action requesting that the claim be declared non-dischargeable.

Section 523(a)(2)(B) treats the omission of an existing tax liability from a signed loan application as a materially false written statement.

American General Financial Services, Inc. v. Johnson (In Re Johnson) · filed 2010-09-27(a)(2)(B)

Debtor’s failure to include the $8,600.00 tax liability was a material omission and thus Debtor made a materially false statement for purposes of Section 523(a)(2)(B). The Court however concludes that Debtor’s silence as to the Spin Cycle Note was not material because Debtor reasonably concluded that the Spin Cycle Note was cured when the associated property was repossessed. Having heard testimony from Plaintiff and Debtor, this Court concludes that Plaintiff has met its burden of proof and the debt is not dischargeable pursuant to 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) excepts a loan debt from discharge when its requirements are established.

Premier Bank v. Koester (In Re Koester) · filed 2010-09-29(a)(2)(B)

Viewing all the facts in the light most favorable to Debtors, the requirements of Section 523(a)(2)(B) are met by clear and convincing evidence as to the 2008 Loan.

Section 523(a)(2)(B) requires a creditor relying on a written financial statement to allege how the statement was materially false.

Iwaszczenko v. Neale (In Re Neale) · filed 2010-11-18(a)(2)(B)

On its face, the complaint fails to provide any information about one of the crucial elements of a claim under § 523(a)(2)(B): that the proffered financial statement was “materially” false.

Reasonable reliance on a debtor’s financial statement can rest on a creditor’s investigation of that statement.

Lavender v. Manheim's Pennsylvania Auction Services, Inc. · filed 2010-11-03(a)(2)(B)(iii)

However, given the circumstances in this case, the Bankruptcy Court’s finding that Creditors sufficiently investigated the statement so as to be able reasonably to rely on it was not clearly erroneous.

Section 523(a)(2)(B) can except part of a debtor’s obligation from discharge even when the debtor receives a general discharge.

Kentucky Neighborhood Bank v. Ireland (In Re Ireland) · filed 2011-01-05(a)(2)(B)

For the reasons set forth below, the Court determines that Defendants are entitled to a discharge under 11 U.S.C. § 727(a), but a portion of Roy Wayne Ireland’s debt to the Plaintiff is not discharged pursuant to 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(B) does not except a debt from discharge when the creditor fails to prove every required element by a preponderance of the evidence.

Northland National Bank v. Lindsey · filed 2011-02-08(a)(2)(B)

Having found no clear error in the bankruptcy court's findings that not every element of § 523(a)(2)(B) had been shown by a preponderance of the evidence, we affirm the bankruptcy court's judgment determining Bank's pre-petition claim against Debtor is not excepted from discharge under that provision.

Section 523(a)(2)(B) assesses whether a creditor reasonably relied on a debtor’s written financial statement in light of the totality of the circumstances.

Southeast Nebraska Cooperative v. Schnuelle · filed 2011-01-27(a)(2)(B)

Under § 523(a)(2)(B), the reasonableness of a creditor’s reliance must be determined in light of the totality of the circumstances.

Section 523(a)(2)(A)’s financial condition exclusion applies to statements about a debtor’s or insider’s overall financial condition, not statements about individual assets or business relationships.

Forde v. Campbell (In Re Campbell) · filed 2011-04-14(a)(2)(A)

This Court also chooses the strict interpretation of such phrase because, if one were to do otherwise and instead choose the broad interpretation, then, as a practical matter, every fraudulent statement made by a debtor could conceivably respect such debtor’s or an insider’s financial condition, thereby rendering § 523(a)(2)(A) a virtual nullity.

Section 523(a)(2)(B) requires a creditor to prove reasonable reliance on a debtor’s written financial statement by a preponderance of the evidence.

Peoples Trust & Savings Bank v. Hanselman (In Re Hanselman) · filed 2011-04-21(a)(2)(B)

It is this Court’s opinion that Peoples ignored the obvious red flags in Hanselman’s PFS in its zeal to do business with him and treated the PFS as a mere formality to the loan. The Court finds that the bank has failed to satisfy its burden of proving, by the preponderance of the evidence, that it reasonably relied on Hanselman’s representations as to his financial condition.

Section 523(a)(2)(B) requires proof that the debtor intended to deceive, intended a financial statement to be false, or was grossly reckless about its truth.

First National Bank v. Grider (In Re Grider) · filed 2011-07-26(a)(2)(B)

While the Financial Statement omitting the Baldock debt appears to meet the elements of the statute, the final element is not met. The standard on this element is whether the debtor either intended to deceive or intended the statement to be false or the statement was grossly reckless as to its truth.

Section 523(a)(2)(B) excepts excess rental assistance from discharge when a debtor obtains it through a materially false written income statement on which the housing authority reasonably relied, with intent to deceive.

Housing Authority of St. Louis County v. White (In re White) · filed 2011-10-03(a)(2)(B)

IT IS ORDERED THAT Plaintiffs Motion for Summary Judgment and Statement of Undisputed Material Facts is GRANTED; and judgment on the Complaint is entered in favor of Plaintiff Housing Authority of St. Louis County and against Debtor/Defendant Joelonda White in that the debt for excess rental assistance in the amount of $2,113.00 is excepted from discharge pursuant to Section 523(a)(2)(B); and this is the final judgment and Order of the Bankruptcy Court in this case.

Section 523(a)(2)(B) does not automatically rule out reasonable reliance on a joint financial statement; the court considers the totality of the circumstances.

North Alabama Bank v. Brooks (In Re Brooks) · filed 2011-09-19(a)(2)(B)

The Court simply cannot find as the debt- or urges that as a matter of law that a joint financial statement automatically negates reliance. The Court must still look to the totality of the circumstances of each case and doing so here finds that there is nothing to suggest that North Alabama Bank did not reasonably rely upon the April 2009 financial statement.

Section 523(a)(2)(B) requires reasonable reliance on a written financial statement; reliance is unreasonable when inconsistencies in the statement would alert an ordinarily prudent lender that it may be unreliable.

LaChance Financial Services, Inc. v. Gemme (In Re Gemme) · filed 2011-09-27(a)(2)(B)

Reliance is not reasonable when warning signs such as inconsistencies within the financial statement would put an ordinarily prudent lender on notice that the statement may be unreliable.

Section 523(a)(2)(B) requires a written statement about the debtor’s financial condition; a promise to complete work does not qualify.

Bracciodieta v. Raccuglia (In re Raccuglia) · filed 2011-10-07(a)(2)(B)

This document, however, is not a financial statement and in fact, makes no representation whatsoever concerning the Debtor’s financial condition. At most, it contains a promise to complete the work as agreed. Because each requirement of Section 523(a)(2)(B) must be met for this exception to apply, the Court concludes summary judgment may not be granted to Plaintiffs on this count.

Section 523(a)(2)(A) does not cover misrepresentations about the debtor’s or an insider’s financial condition, including statements bearing on ability to pay.

Jacobs v. Versa Corp. (In Re Jacobs) · filed 2011-10-21(a)(2)(A)

The Court finds and concludes that every one of the misrepresentations that Versa Corp. alleges in this case was a “statement respecting the debtor’s or an insider’s financial condition,” such that § 523(a)(2)(A) does not apply to any of them.

Section 523(a)(2)(B)(iii) allows an assignee to establish reasonable reliance through the original creditor’s reliance on the debtor’s materially false written financial statement.

First American Title Insurance v. Pazdzierz (In Re Pazdzierz) · filed 2011-10-24(a)(2)(B)(iii)

The Court holds, therefore, that a creditor in bankruptcy may satisfy the requirements of 11 U.S.C. § 523(a)(2)(B)(iii) by showing that the creditor to whom the debtor was initially “liable for such money, property, services, or credit reasonably relied” on a materially false written statement respecting the debtor’s financial condition when extending credit and creating the debt being challenged as nondischargeable.

Section 523(a)(2)(B) requires a creditor to reasonably rely on a materially false written statement about the debtor’s financial condition to except a debt from discharge.

Bank Iowa — West Des Moines v. Villalobos (In Re Villalobos) · filed 2011-11-09(a)(2)(B)

It is unrealistic to conclude that the Bank relied solely on the personal financial statement to the exclusion of all other information, and even if it did, its reliance was not reasonable under the circumstances.

Section 523(a)(2)(B) requires a statement about the debtor’s overall financial condition; a statement about ownership of a single asset does not qualify.

Sampson Lumber Co. v. Tucci (In re Tucci) · filed 2011-11-15(a)(2)(B)

Applying the narrow definition to the present case, the Statement of Ownership does not qualify as a statement of financial condition because it was a statement of ownership of a single asset, and not an assessment of the Debtor’s overall financial health. Accordingly, the Statement of Ownership does not satisfy the “financial condition” element of 11 U.S.C. § 523(a)(2)(B).

Section 523(a)(2)(A) excludes oral statements about a debtor’s overall financial condition, but isolated representations about income, expenses, or assets do not qualify for that exclusion.

Barnes v. Belice (In Re Belice) · filed 2011-12-02(a)(2)(A)

Accordingly, under our interpretation of the financial condition phrase, Belice’s alleged misrepresentations do not amount to a statement respecting his financial condition. At most, they are isolated representations regarding various items that might ultimately be included as assets in a balance sheet or in a statement of net worth. The bankruptcy court thus erred when it ruled that Barnes had not stated and could not state a claim for relief under § 523(a)(2)(A), and we must reverse.

Section 523(a)(2)(B) requires reasonable reliance on a false financial statement, assessed case by case under the totality of the circumstances.

In re: Peter David Kempf · filed 2012-02-14(a)(2)(B)

The standard in the Ninth Circuit for “reasonable reliance” does not require adherence to any particular list of factors; rather, as Candland and Gertsch make clear, the bankruptcy court is to make its determination on a case-by-case basis in light of the totality of the circumstances.

Section 523(a)(2)(B) requires a creditor to reasonably rely on a written statement about the debtor’s financial condition; reliance on a confusing credit application may fail that requirement.

First Mutual Sales Finance v. Cacciatori (In Re Cacciatori) · filed 2012-02-15(a)(2)(B)

Because the credit application form itself is confusing, vague and self-contradictory, it was not reasonable for First Mutual to have relied upon it in the case of the loan made to Ms. Cacciatori.

Section 523(a)(2)(B)(iii) requires a creditor to have actually and reasonably relied on the debtor’s written financial statement.

Mountain Valley Community Bank v. Freeman (In Re Freeman) · filed 2012-04-04(a)(2)(B)(iii)

The Bank must also show that it reasonably relied upon Debtor’s financial statements. This is a two-part analysis. First, Section 523(a)(2)(B)(iii) requires that the creditor actually rely on the debtor’s statement.

Section 523(a)(2)(B)(iii) requires a creditor to prove that it actually relied on the false written statement and that its reliance was reasonable.

Oster v. Clarkston State Bank (In Re Oster) · filed 2012-03-26(a)(2)(B)(iii)

Section 523(a)(2)(B)(iii)’s requirement has been interpreted to require the creditor to prove that it actually relied on the false statement (reliance in fact), and that such reliance was reasonable.

Section 523(a)(2)(A) can except a debt based on an oral misrepresentation only if the misrepresentation is not about the debtor’s financial condition.

Steves v. Labella (In Re Steves) · filed 2012-07-23(a)(2)(A)

Under § 523(a)(2)(A), oral misrepresentations can except a debtor from discharge only if they are not about the “financial condition” of the debtor.

Section 523(a)(2)(B) excepts a debt from discharge when it was obtained through an intentionally deceptive written statement about the debtor’s financial condition on which the creditor reasonably relied.

First Citizens National Bank v. Trimble (In re Trimble) · filed 2012-08-24(a)(2)(B)

The court is of the opinion that First Citizens has met is burden in proving that the debt owed by the debtor is nondis-chargeable under § 523(a)(2)(B).

Section 523(a)(2)(B)(iii) allows an assignee to establish reasonable reliance by showing that the original lender reasonably relied on the debtor’s statement.

In re: Javier Tovar · filed 2012-08-03(a)(2)(B)(iii)

Rather, the creditor need only establish reasonable reliance by the original lender who extended credit to the debtor.

Section 523(a)(2)(B) requires an assignee claiming a debt is nondischargeable to prove that the original lender reasonably relied on the debtor’s written financial statement.

Waugh Real Estate Holdings, LLC v. Daecharkhom (In re Daecharkhom) · filed 2012-10-04(a)(2)(B)

There must be some factual evidence that the originator relied on the materially false writing. Plaintiff has the burden of offering evidence of reasonable reliance.

Section 523(a)(2)(A) and (B) require a creditor seeking to except a debt from discharge to show reliance on the debtor’s fraudulent statement or conduct.

In re: Yong Li · filed 2012-11-07(a)(2)(A), (a)(2)(B)

There are no facts pled in the Complaint that demonstrate Zhong’s reliance on a fraudulent statement (either oral or written) made by the Debtor prior to renting the condo.

Section 523(a)(2)(B) requires the creditor seeking to except a debt from discharge to show that the debtor obtained money, property, services, or credit from that creditor at the time of the misrepresentation and that the creditor reasonably relied on it.

Samuel J. Temperate Revocable Trust v. Unterreiner (In Re Unterreiner) · filed 2012-11-08(a)(2)(B)

The Trust is not entitled to judgment as a matter of law because it cannot meet all the requirements of § 523(a)(2)(B) to except a debt from discharge. The Unterreiners did not obtain money, property, or services from the Trust, and the Trust did not rely on the Unterreiners' misrepresentation when it guaranteed DQSTL's obligations.

Section 523(a)(2)(B) requires a false written statement about the debtor’s or an insider’s financial condition; a purchase agreement making no such representation does not qualify.

Dunn v. Whyte (In re Whyte) · filed 2013-01-29(a)(2)(B)

This document, however, is not a financial statement and in fact, makes no representation whatsoever concerning this Debtor’s financial condition. At most, it contains a promise to complete the work as agreed. Because each requirement of Section 523(a)(2)(B) must be met for this exception to apply, and since no fact question has been shown by Plaintiff regarding same, the Court concludes summary judgment will be granted in favor of Debtor on count III.

Section 523(a)(2)(B) requires reasonable reliance on a debtor’s written statement, assessed under the totality of the circumstances.

Bank of Nebraska v. Rose · filed 2012-12-20(a)(2)(B)

Citing First Nat'l Bank of Olathe v. Pontow (In re Pontow), 111 F.3d 604, 610 (8th Cir. 1997), the bankruptcy court further stated–again correctly–"[r]easonable reliance is determined by looking at the totality of the circumstances." (Emphasis added). We are therefore satisfied the bankruptcy court applied the correct legal standard in determining whether Bank reasonably relied on Debtor's written statements.

Section 523(a)(2)(B) requires a creditor to prove that it reasonably relied on a materially false written statement about the debtor’s financial condition.

Harris N.A. ex rel. Harris Trust & Savings Bank v. Gunsteen (In re Gunsteen) · filed 2013-02-08(a)(2)(B)

The Bank has not established by a preponderance of the evidence that there was fraud with respect to Gunsteen’s 2009 Personal Financial Statement to satisfy the requirements of § 523(a)(2)(B). As shown by the Findings and as discussed below, the evidence has not established that she wrote the line on page 2 of the Statement showing continued ownership of the Vacation Property. Moreover, the Bank did not reasonably rely on that line because the information on it was directly contradicted by correct information about the Gunsteen assets on page 1 of the Statement which should have but did not prompt the Bank officials to inquire further.

Section 523(a)(2)(B) requires a creditor’s reliance on a debtor’s written financial statement to be reasonable under the circumstances.

Malcolm Clifton Davenport, V v. Frontier Bank · filed 2013-02-13(a)(2)(B)(iii)

We have previously explained that for purposes of discharge under § 523(a)(2)(B), “[r]easonable reliance connotes the use of the standard of ordinary and average person.” In re Vann, 67 F.3d 277, 280 (11th Cir. 1995). ... Accordingly, we cannot say that the bankruptcy court clearly erred in its factual findings and, therefore, AFFIRM its conclusion that Davenport’s debt to Frontier is non-dischargeable under 11 U.S.C. § 523(a)(2(B).

Section 523(a)(2)(B) excepts a debt from discharge when the debtor obtains credit through a materially false written statement about financial condition that the creditor reasonably relies on and the debtor publishes with intent to deceive.

Bank of North Georgia v. McDowell (In re McDowell) · filed 2013-06-03(a)(2)(B)

Ultimately, the Court finds that material questions of fact remain as to: 1) whether the Debtor obtained a debt or an extension of credit from the Plaintiff, through the use of the October 24, 2008 Balance Sheet; 2) whether the information provided in the October 24, 2008 Balance Sheet was materially false; 3) whether the reliance on the October 24, 2008 Balance Sheet was reasonable; and 4) whether the Debtor published the October 24, 2008 Balance Sheet with the intent to deceive the Plaintiff. For these reasons, the Court believes summary judgment as to the section 523(a)(2)(B) claim to be premature and inappropriate at this time.

Section 523(a)(2) can support pleaded claims based on asset diversion or double pledging even when an oral misrepresentation theory is dismissed.

Talisman Capital Alternative Investments Fund, Ltd. v. Mouttet (In re Mouttet) · filed 2013-05-16(a)(2)

While the Debtor is correct that the primary focus of Talisman’s claim arises from oral misrepresentations, and, thus, is subject to dismissal, Talisman also alleges the diversion of certain assets and the double pledging of collateral. These latter claims are properly pleaded. Accordingly, the Debtor’s motion to dismiss Count XIX is granted in part and denied in part.

Section 523(a)(2)(B)'s intent to deceive requirement can be satisfied by recklessness about the falsity of a written financial statement.

Toye, III v. O'Donnell · filed 2013-08-26(a)(2)(B)

And today we join our sibling circuits and hold that recklessness can suffice under section 523(a)(2)(B) too.