In re Freeman (Ch. 7 Case No. 10-32105, Adv. Case No. 11-03019)
The bank objected to the dischargeability of its claim under 11 U.S.C. § 523(a)(2)(B) because the debtor had falsely claimed on his financial statements that he owned certain real property. Although the bank had foreclosed on the real property that secured the debtor’s debt, the bank had not had the sale confirmed in state court. The bankruptcy court held that, under state law, the bank had no enforceable deficiency claim against the debtor and dismissed the bank’s complaint with prejudice.