Robert Marrama filed a voluntary bankruptcy petition under Chapter 7. In the filing, Marrama made a number
Question:
Robert Marrama filed a voluntary bankruptcy petition under Chapter 7.
In the filing, Marrama made a number of statements about his principal asset, a house in Maine, which were misleading or inaccurate. He reported that he was the sole beneficiary of the trust that owned the property, and he listed its value as zero. He also denied that he had transferred any property other than in the ordinary course of business during the year preceding the filing of his petition. In fact, the Maine property had substantial value, and seven months prior to filing his petition, Marrama had transferred it into the newly created trust for no consideration. Marrama later admitted that the purpose of the transfer was to protect the property from his creditors. The trustee stated that he intended to recover the Maine property as an asset of the estate. Thereafter, Marrama sought to convert to Chapter 13, claiming that he had an absolute right to convert his case. Both the trustee and Marrama’s principal creditor objected, contending that the request to convert was made in bad faith. Explain whether Marrama should be permitted to convert the case to Chapter 13.
Step by Step Answer:
Essentials Of Business Law And The Legal Environment
ISBN: 9781337555180
13th Edition
Authors: Richard A Mann, Barry S Roberts