The Sheer Magnitude of Debtor’s Overstatement of Income on Application Supported Inference of Intent to Deceive Under 523(a)(2)

The Sheer Magnitude of Debtor’s Overstatement of Income on Application Supported Inference of Intent to Deceive Under 523(a)(2)

Debtors filed a voluntary chapter 7 petition on February 10, 2017, and received a discharge on May 16, 2017. Debtors’ schedule E/F lists an unsecured debt owing to Clearway in the amount of $11, 650.

Debtors submitted a rental application to Clearway on April 25, 2016. Clearway further alleges that it decided to rent the property to Debtors in reliance on the statements in the application, several of which were materially false.

Clearway filed a timely adversary complaint seeking a determination that its claim is nondischargeable under § 523(a)(2). Debtors answered the complaint by generally denying Clearway’s allegations, and raising various factual allegations in response.

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