In re Arenson

Citations

• 195 F. 609
• 1912 U.S. Dist. LEXIS 1660

Syllabus

<p>1. Bankruptcy (§ 107*)—Discharge—Objections—Grounds.</p> <p>A bankrupt, who obtained credit for additional goods on a materially false statement of Ms financial condition, and who subsequently to the purchase of the additional goods on credit made payments on earlier purchases, so that the amount owed by him at the time he went into bankruptcy was less than the amount of his indebtedness at the time of the making of the false statement, was guilty of making a materially false statement, defeating his right to a discharge in bankruptcy, under Bankruptcy Act July 1, 1898, c. 541, § 14b, 30 Stat. 550 (U. S. Comp. St. 1901, p. 3427), as amended by Act Feb. 5, 1903, c. 487, § 4, 32 Stat. 797 (U. S. Comp. St. Supp. 1909, p. 1310).</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 729-731, 737, 738, 740-751, 758, 760, 701; Dec. Dig. § 407.*]</p> <p>2. Bankruptcy (§ 407*)—Discharge—Objections—Grounds.</p> <p>Where the credit man of a seller, on a bankrupt placing an order for additional goods, refused to sMp the goods and notified the bankrupt thereof, who made a statement of his financial condition, and thereupon the credit man approved the order and the goods were shipped, the credit was due to the making of the statement, which, if materially false, would defeat the right of the bankrupt to a discharge.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 729-731, 737, 738, 740-751, 758, 760, 761; Dec. Dig. § 407.*]</p> <p>3. Bankruptcy (§ 407*)—Discharge—Objections—Grounds.</p> <p>A bankrupt, wbo made a materially false statement in writing as to his financial condition by positively stating that he was not indebted to relatives or friends on loans, while as a matter of fact he was indebted to them in a sum nearly equal to the amount. of the excess of his assets over his liabilities, as shown by the statement, could not excuse the. falsity of the statement by showing that the creditor to whom it was made stated that it was a mere matter of