Michigan Creditor Failed to Prove Scienter of Debtor’s Knowledge of Alleged “Misrepresentation”

As reported by Robin Miller of CBAR, a Michigan Creditor failed to show that debtor knew that misrepresentation was false and the creditors claim was ruled to be dischargeable:

The judgment creditor failed to prove that the Chapter 7 debtor knew that his statement, that he was an authorized member of the limited liability company on whose behalf he signed a lease to open a restaurant in the creditor’s shopping center, was false when he made the statement, so that the creditor failed to establish that the debtor acted with the intention and purpose of deceiving the creditor, for the purpose of rendering the judgment debt nondischargeable under Code § 523(a)(2)(A).

In re Rauf, 504 B.R. 838 (Bankr. E.D. Mich., Jan. 3, 2014)

(case no. 2:12-bk-67060; adv. proc. no. 2:13-ap-4260) (Chief Bankruptcy Judge Phillip J. Shefferly)

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