BANKRUPTCY - DEBTS NOT AFFECTED BY A DISCHARGE - GOODS PURCHASED WHEN INSOLVENT WITH NO INTENT TO PAY

Authors

William C. Wetherbee Jr., University of Michigan Law School

Abstract

Respondent was suing the debtor in a municipal court of Georgia for goods purchased on account. When the debtor was ajudicated a bankrupt, the respondent changed his action from contract to tort by alleging that the bankrupt had purchased the goods when insolvent with no intent to pay for them. A judgment was obtained by respondent and the bankrupt subsequently received a discharge in bankruptcy. The bankrupt now asks that the respondent be enjoined from further proceeding to enforce this judgment by garnishment or in any other manner. Respondent claims that the judgment was not discharged since it was a liability for obtaining property by false pretenses or false representations. Held, an injunction should be granted since the purchase of goods while insolvent and with no intent to pay was not the obtaining of property by false pretenses or false representations. Davison-Paxon Co. v. Caldwell, (C. C. A. 5th, 1940) 115 F. (2d) 189.

Recommended Citation

William C. Wetherbee Jr., BANKRUPTCY - DEBTS NOT AFFECTED BY A DISCHARGE - GOODS PURCHASED WHEN INSOLVENT WITH NO INTENT TO PAY, 39 Mich. L. Rev. 812 (1941).
Available at: https://repository.law.umich.edu/mlr/vol39/iss5/8