In an article published in The Bankruptcy Strategist on November 4, John Thomson discusses the implications of Lamar, Archer & Cofrin, LLP v. Appling, 138 S. Ct. 1752, 201 L. Ed. 2d 102 (2018) (Lamar, Archer), on lenders and those that provide services on credit. This comes as bankruptcy laws have, in the past, required consequences for those debtors who try to obtain credit by using false or misleading financial documents or claims.
After giving background on the case, John explains the issues that surrounded the Supreme Court’s decision and what is still up in the air after the ruling.
“Until bankruptcy courts and the various United States courts of appeal have an opportunity to apply and refine the holding in Lamar, Archer, lenders and service providers should train their lending officers and credit managers to go to extraordinary lengths to make sure that any representations made by a particular borrower or recipient of services are thoroughly documented through some type of writing that has been prepared by or at least confirmed in writing by the prospective borrower or service recipient,” he explains.