David Hott was a college graduate with a degree in business administration who was employed as an insurance agent. He and his wife graduated from college in 1996. At the time he graduated, Hott had outstanding student loans of $14,500 for which he was given a grace period before he had to repay them. Hott became unemployed. Bills began to accumulate, and a number of his outstanding bills were near the credit limits on his accounts. About that time, he received a promotional brochure by mail from Signal Consumer Discount Company, offering the opportunity to borrow several thousand dollars. The Hotts decided it appeared to be an attractive vehicle for them to use to consolidate their debts. Hott went to the Signal office and filled out a credit application. He did not list the student loan as a current debt. He later claimed that someone in the office told him he didn’t have to list it if he owned an automobile, but there was significant doubt about the credibility of this claim. Had he listed it, he would not have met the debt-income ratio required by Signal, and it would not have made the loan. As it was, Signal agreed to make the loan on the condition Hott pay off a car debt in order to reduce his debt-income ratio and Hott agreed to do so. On March 30, 1997, Signal loaned the Hotts $3,458.01. On June 24, 1998, the Hotts filed for bankruptcy. Signal objected to discharge of the balance remaining on its loan on the ground it had been obtained through the use of a materially false fi nancial statement. Was discharge of the debt barred on the ground it had been obtained through the use of a materially false fi nancial statement?