Can a bankruptcy court refuse to allow a debtor to convert from Chapter 7 to Chapter 13?

When Robert Marrama filed a voluntary petition under Chapter 7, he lied. Although he disclosed that he was the sole beneficiary of a trust that owned a house in Maine, he listed its value as zero. Marrama also denied that he had transferred any property during the prior year. Neither statement was true: the Maine property was valuable (how many houses are worth zero?), and he had given it for free to the trust seven months prior to filing for bankruptcy protection. Marrama also lied when he claimed that he was not entitled to a tax refund. In fact, he knew that a check for $8,700 from the Internal Revenue Service was in the mail.
Once Marrama found out that the bankruptcy trustees were going after the Maine property, he filed a notice to convert his Chapter 7 bankruptcy to Chapter 13. The trustee and creditors objected. They contended that because Marrama had acted in bad faith when he tried to conceal the Maine property from his creditors, he should not be permitted to convert. The bankruptcy court and the appeals court agreed. The Supreme Court granted certiorari.