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Bankruptcy Courts Have Broad Authority: High Court

Law360 (August 9, 2007, 12:00 AM EDT) -- On Feb. 21, 2007, the Supreme Court of the United States determined by a one-vote margin that a chapter 7 debtor who acts in bad faith does not have an absolute right to convert his case to a chapter 13 case. Marrama v. Citizens Bank of Massachusetts, 127 S.Ct. 1105 (2007) (5-4 decision).

Although this holding resolves a dispute between the courts as to whether there is a “bad faith” exception to the ability of a debtor to convert his case pursuant to section 706(a) of...
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