Episode description

In this case, the court considered this issue: Can a bankruptcy debtor be held liable for another person’s fraud, even when they were not aware of the fraud?

The case was decided on February 22, 2023. The Supreme Court held that the Bankruptcy Code exemption from discharge for debts involving fraud precludes the partner of the individual who committed the fraud from discharging a debt, regardless of her own culpability. Justice Barrett filed an opinion for a unanimous Court. Justice Sotomayor filed a concurring opinion, in which Justice Jackson joined.