Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
In Lentz v. Spadoni (In re Spadoni), 271 B.R. 703, 2002 Bankr. LEXIS 26,XXXXX Dec. (LRP) 248 (B.A.P. 1st Cir. 2002), vacated by Lentz v. Spadoni (In re Spadoni), 316 F.3d 56, 2003 U.S. App. LEXIS 465,XXXXX Dec. (LRP) 191, Bankr. L. Rep. (CCH) P78782 (1st Cir. 2003), on other grounds, the Bankruptcy Appellate Panel for the 1st Federal District writes:
In Middlesex Sav. Bank v. Flaherty (In re Flaherty), 335 B.R. 481, 2005 Bankr. LEXIS 2614 (Bankr. D. Mass. 2005), the Mass. District Bankruptcy Court writes:
In plain english, the above case law stands for the proposition that proving a fraud in bankruptcy court is something slightly less demanding that that of an ordinary court, because reasonable reliance test is replaced with a justifiable reliance test. However, in practice, the bankruptcy courts are required to consider the importance of the "fresh start" purpose of bankruptcy, so, in fact, the elements of a fraud in bankruptcy are really pretty much identical to those outside of bankruptcy.
Hope this helps.
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