|Marrama v. Citizens Bank, First Circuit Court of Appeals |
Marrama filed a chapter 7, but failed to properly list real estate and personal property on his bankruptcy schedules. When those failures (allegedly intentional) were brought to light, Marrama tried to convert his case to Chapter 13, in order to save those properties from being taken by the Chapter 7 trustee. The Court held that Marrama did not have the absolute right to convert his case to Chapter 13 because he had not listed all his assets and debts in good faith. The Court concluded that his bad faith should be punished by not permitting him to retain property not disclosed. This very important decision demonstrates the necessity of accurately listing assets in bankruptcy schedules.