If a debt is incurred by virtue of a false financial statement on which the creditor relied, and that debt is then assigned to a third party, can the assignee of that debt claim successfully that the right to have the debt declared non-dischargeable was included in “all of the rights” conferred by the assignment?
This question was faced by the 9th U.S. Circuit Court of Appeals in Boyajian v. New Falls Corp. (In re Boyajian) . In 1999, the Boyajians’ company, Blue Diamond Straw & Toothpick Co. Inc., entered into a lease agreement with Epic Funding Corp. Epic requested personal guarantees of the lease obligations from the Boyajians and financial statements of both.
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