The United States Supreme Court recently held in Husky International Electronics, Inc., v. Ritz¹ that the term actual fraud, as used in 11 U.S.C. § 523(a)(2)(A), encompasses all forms of fraud and does not require a false representation. Several commentators tout this holding as a good result for lenders, as it may except certain debts from discharge in bankruptcy when there is evidence of intentional misconduct by the individual debtor.

In a bankruptcy case, the bankruptcy estate (through the Debtor or Trustee) is permitted to employ counsel and other professionals (e.g.