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Marrama v. Citizens Bank of Mass.

Docket No.: 05-996
Certiorari Granted: Jun 12 2006
Argued: November 6, 2006
Decided: February 21, 2007

Topics:

Bankruptcy, Bankruptcy Code, chapter 7, chapter 11

PartyNames: Robert Louis Marrama v. Citizens Bank of Massachusetts, et al.
Petitioner: Marrama
Respondent: Citizens Bank of Mass.

Court Below: United States Court of Appeals for the First Circuit

Marrama
v.
Citizens Bank of Mass.
549 U.S. 365 (2007)
Question Presented:

The First Circuit Court of Appeals affirmed the decision of the Bankruptcy Appellate Panel for the First Circuit which affirmed the decision of the Bankruptcy Court for the District of Massachusetts denying the request of the Petitioner, Robert Louis Marrama, to convert his bankruptcy case from Chapter 7 to Chapter 13. The bankruptcy court held, in essence, that notwithstanding the plain language of the statute and of the legislative history, the right to convert a case from one chapter to another, found in 11 USC ยง706(a), can be denied in the bankruptcy court's discretion if the bankruptcy court determines that the request was made in bad faith. In a decision that focused on factual determinations, the Bankruptcy Appellate Panel affirmed. The First Circuit Court of Appeals focused on statutory construction and determined that although the legislative history says that the right to convert is "absolute", the right can be denied in circumstances such as those presented in this case. The question presented, therefore, is whether the right to convert a chapter 7 bankruptcy case to another chapter can be denied notwithstanding the plain language of the statute and the legislative history.

Holding: affirmed
Vote: 5-4
Opinion By:
Read MARRAMA V. CITIZENS BANK OF MASS. opinion (PDF)

Read opinion

Other Resources for Marrama v. Citizens Bank of Mass.:
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justia.com
wikipedia.org