Abstract
Despite the Court answering the question that "actual fraud" in § 523 (a) (2) (A) does not require a misrepresentation, the "obtained by" issue is likely to leave lower courts split on what to do with Husky-type cases.\n Assume, as will likely be the case in these types of actions, that the $300 is not easily attributed to any one of the three individual creditors.26 The transferee files a chapter 7 petition, and all of the transferor's creditors want to prevent the transferee from discharging her debt. Because the transferee received only $300 in fraudulent transfers, does only the winner of the proverbial "race to the courthouse" get to except its debt from discharge? How will bankruptcy courts deal with this situation? Because the fraudulent transfers are not specifically tied to any of the 100 creditors, it would make sense for one action to be brought on behalf of all of the creditors.