Publication Date



The Bankruptcy Code largely exists to provide a
"fresh start" to debtors. But not everyone gets a free
pass. If a debtor has intentionally lied in order to
obtain money, property, services, or an extension,
renewal, or refinancing of credit, he receives no
protection. However, there is an exception built into the
code to protect debtors from predatory lenders intent on
gaming the system in an effort to eliminate insolvency
risk. The size of this exception has become a matter of
judicial debate over the past thirty-eight years as a
circuit split has slowly developed over the
interpretation of 11 U.S.C. §523(a)(2)(A) & (B)'s
"statement respecting.., financial condition." Early in
2017, the Eleventh Circuit weighed in for the first time,
reversing a recent trend of circuit court decisions that
have effectively limited the protections against
predatory lenders in an effort to protect vulnerable
lenders from fraudulent debtors. This Note advocates
for a return to the broader interpretation of "statement
respecting a debtor's financial condition," a position
that, prior to the Eleventh Circuit's recent decision in
Appling v. Lamar, Archer & Cofrin, LLP, had lacked
any significant support in recent jurisprudence, by

squarely addressing and rebutting the most widely
raisedarguments in favor of a narrow interpretation