Charles W. Castleman was a petitioner in bankruptcy who brought his case before the United States Supreme Court. He argued that he had been wrongfully denied a discharge from his debts by the Circuit Court of Kentucky, and sought to have it reversed. The Supreme Court found that while Congress had not given the Circuit Courts authority to deny discharges, they did have power to grant them if certain conditions were met; namely, that there be no fraud or bad faith on behalf of the debtor and that all creditors receive equal treatment under law. Furthermore, it held that when such conditions are satisfied then "the right of discharge is absolute." Ultimately, this decision established an important precedent for future bankruptcies cases: debtors must meet certain criteria in order for their debts to be discharged but once those requirements are fulfilled then they cannot legally be refused relief from their obligations.

In Charles W. Castleman, a Petitioner in Bankruptcy, the Supreme Court was asked to decide whether or not a debtor's property could be used to pay creditors when it had been transferred by the debtor prior to filing for bankruptcy. The majority opinion held that such transfers were voidable and thus could be used to satisfy creditors' claims. However, Justice McLean dissented from this ruling on two grounds: firstly, he argued that Congress did not intend for debtors’ pre-bankruptcy transfers of property to be voided; and secondly, he contended that allowing such transfers would violate state laws governing contracts between individuals. In conclusion, Justice McLean believed that Congress should have explicitly stated its intention regarding pre-bankruptcy transfers if they were meant to be voided upon filing for bankruptcy protection.