In 2012, the petitioner, Kate Bartenwerfer, and her husband lost a jury verdict after allegedly failing to disclose defects in a house that they sold in San Francisco, California.

[1] The bankruptcy court adopted the "known or should have known" test arising out of Walker v. Citizens Bank, 726 F.2d 452 (8th Cir.

The justices focused on the language of 11 U.S.C § 523(a)(2)(A), which excepts from discharge debts incurred by "money... obtained by... actual fraud.

[7] On February 22, 2023, the Supreme Court unanimously held that fraudulently obtained debts cannot be discharged in bankruptcy.

[9] In her concurrence, Justice Sotomayor argued that the decision should apply only to debts obtained through the fraud of a partner or agent of the bankrupt.