Materially False Statement Law and Legal Definition

”For purposes of non-dischargeability of a debt in bankruptcy, a materially false statement is defined as one that paints a substantially untruthful picture of a financial condition by misrepresenting information of the type which would normally affect a decision to grant credit.” Ocean Equity Group, Inc. v. Wooten (In re Wooten), 2010 Bankr. LEXIS 49 (Bankr. E.D. Va. Jan. 5, 2010)