Ojeda v. Goldberg

Dist. Ct. did not err in reversing Bankruptcy Ct. order finding that debtors' unpaid loan to creditor was dischargeable, where creditor argued that said debt was nondischargeable due to debtors' fraudulent representations. Bankruptcy Ct. erred in finding that creditor was not justified in relying on debtors' misrepresentations regarding ownership of two McDonald's restaurants. Fact that debtors did not use said restaurants as security for loan was not material where creditor could rely on debtors' representations of ownership in assessing their abilities to satisfy loan obligations. Moreover, instant loan was nondischargeable where record showed that said misrepresentations induced creditor to forbear in collecting on loan, which resulted in collection remedies that had decreased in value..