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SCOTUS held innocent partner liable for fraud of another partner. Should the innocent party declare bankruptcy, the bankruptcy code would bar a discharge of the debt because it was obtained by false pretenses, a false representation or actual fraud Bartenwerfer v. Buckley

Bartenwerfer v. Buckley settled the question of whether the debt resulting from the fraud of a legal partner or spouse can be imputed to the fraudster’s innocent wife in the bankruptcy context. Supreme Court held one can not discharge their debt due to their partner’s fraud.