Citation Codes Equivalent Citations citation codes Docket Number No. NL 78-00525 B 5 Judges NIMS, Bankruptcy Judge See more information ... Smart Summary Please sign up to generate summary. IN RE MILENKOVIC. Debts Not Affected by Discharge — Undischargeable Torts — False Financial Statement — Blanks in Form NIMS, Bankruptcy Judge An intert to deceive and make a false financial statement cannot be inferred from blank spaces left in a financial statement Section 17a(2) of the Bankruptcy Act excepts from discharge those debts for obtaining money or credit in reliance upon a materially false statement in writing respecting financial condition made with an intent to deceive. There must be proof of an intent to deceive and the statement must have been knowingly or intentionally untrue. In this case, the bankrupt had written "none" under the line requesting information as to rent or mortgage and had left blank all other lines concerning debts. However, the bankrupt did have some outstanding indebtedness when the statement was made. He testified that he forgot about his student loans when he filled out the forms and that most of the remaining debts were owed to relatives and that he did not consider them debts but rather moral obligations. The bankrupt further testified that he thought the statement was true and that he did not intend to deceive the creditor. Since the bankrupt's testimony was not contradicted, and since the only claim is that blanks were left in the financial statement, creditor has not met its burden of proof. Thus, the complaint is dismissed with prejudice. See Sec. 17a(2) [§ 523(a)(2)] at ¶ 9228.