"Innocent people are sometimes held liable for fraud they did not personally commit, and, if they de-clare bankruptcy, [the bankruptcy code] bars discharge of that debt," Barrett wrote.
The couple was unable to pay the award or other creditors and filed for protection under Chapter 7 of the bankruptcy code, which normally allows people to void all of their debts.
. . false pretenses, a false representation, or actual fraud,'" Barrett wrote.
A U.S. Bankruptcy Court judge ruled in his favor, saying "that neither David nor Kate Bartenwerfer could discharge their debt to Buckley," the opinion by Barrett noted.
"Based on testimony from the parties, real-estate agents, and contractors, the court found that David had knowingly concealed the house's defects from Buckley," Barrett wrote.