West Virginia
How Cohen v. de la Cruz applies in West Virginia: state-specific rules, key cases, and bar exam notes for Bankruptcy.
West Virginia follows the general principles established in Cohen v. de la Cruz regarding the non-dischargeability of certain debts in bankruptcy, particularly those arising from fraud. The courts uphold the notion that obligations resulting from fraudulent conduct are not extinguished by bankruptcy discharge.
Under West Virginia law, debts incurred through false pretenses, fraud, or misrepresentation are considered non-dischargeable in bankruptcy, consistent with the principles laid out in Cohen v. de la Cruz.
The court held that debts arising from fraudulent misrepresentation were non-dischargeable under West Virginia bankruptcy law.
The court reaffirmed that any debt incurred through fraud represents a breach of trust and is excepted from discharge.
The court found that misconduct demonstrating intent to deceive clearly falls within the parameters set forth in Cohen.
West Virginia's approach aligns closely with the federal standard under 11 U.S.C. § 523(a)(2), which also provides for the non-dischargeability of debts obtained by false pretenses or fraud. However, state courts may provide more expansive interpretations based on specific circumstances of local cases.
Understanding the principles established in Cohen v. de la Cruz as they apply to West Virginia is crucial for the bankruptcy section of the West Virginia bar exam, particularly regarding non-dischargeable debts.