The Supreme Court agreed on May 2 to take a case about whether a bankrupt debtor can escape liability for a debt arising out of someone else’s fraudulent act.
Kate Bartenwerfer, who filed for bankruptcy after an ill-fated real estate deal, appealed after the often-reversed U.S. Court of Appeals for the 9th Circuit ruled she can’t get away from a debt that is nondischargeable in bankruptcy, even though she maintains she had nothing to do with her husband’s fraudulent conduct in the sale of their San Francisco home.
