Citation Codes Equivalent Citations citation codes Docket Number Nos. 3-75-1710(1711)(D) Judges DIM, Bankruptcy Judge See more information ... Smart Summary Please sign up to generate summary. IN RE SILVER. Debts Not Affected By Discharge — False Representation — Money Or Property Not Obtained DIM, Bankruptcy Judge The fact that a bankrupt gave worthless stock certificates to a creditor as additional security was not obtaining money or property by false representations within the meaning of Section 17a(2) of the Bankruptcy Act, since the creditor gave neither money nor property to the bankrupt as a result of the transaction. The creditor was the owner of a jewelry store. The bankrupt purchased the store from the creditor. Contemporaneous with the execution of the sale agreement, the bankrupt had executed an installment note. Concerned about payment of the balance due, the creditor obtained from the bankrupt an addendum to the original purchase agreement. By this agreement, the bankrupt pledged to the creditor, 300 shares of stock in the bankrupt's corporation. In reality, these stock certificates had no value. The creditor filed a complaint to determine the dischargeability of the debt owed to them by the bankrupt. The court found that the debt was a contract debt provable in bankruptcy and dischargeable in bankruptcy. Reviewing the evidence, the court was of the opinion that the creditor knew that the stock certificates had no value. Moreover, at the time of the execution of the addendum agreement, the creditor gave to the bankrupt neither money nor property. Section 17a(2) requires that money or property must be obtained by means of the representation, and in this case none was obtained by the bankrupt. Thus, the court concluded that the debt owed by the bankrupt was dischargeable. See Sec. 17a(2) [§ 523(a)(2)] at ¶ 9228.