Ogden v. Saunders

Ogden v. Saunders (1827) was a Supreme Court case that addressed whether a bankruptcy law could discharge a debtor’s debt if the court believed the debtor's original contract was fraudulent. The Court ruled that federal bankruptcy laws could not override state laws that prohibit debt discharge in cases of fraud. Essentially, even if federal bankruptcy laws allow a debtor to be freed from certain debts, a state law that considers those debts fraudulent and not dischargeable still applies, emphasizing the balance between federal and state authority over bankruptcy issues.