Legal News for Credit Union Managers Since 1990

Archive for January, 2022

05
Jan
2022

Reasonable Reliance on Debtor’s Loan Application

Debtor submitted a materially false loan application causing financial loss to the creditor, but the Court found no “reasonable reliance” by the creditor on the loan application and discharged the debt in bankruptcy. Here, the court held that creditor ITT Financial Services (ITT) had not reasonably relied on the debtor’s false loan application and the court discharged the […]

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