Absolute Right to convert a 7 to a 13
Posted: Fri Jan 18, 2013 10:10 am
Dear List Serv, I have a client with a business which has a value as a going concern. Debtor is hesitant to file a Chapter 13, and wants to try a 7 first. However I am concerned that the Trustee will attempt to sell the business. I know that under Marrama v. Citizens Bank of MA, the Debtor does not have an absolute right to convert a case from a 7 to a 13 if Debtor has engaged in pre-petition bad faith conduct. My question is: If debtor does not engage in prepetition bad faith conduct, and if debtor discloses and fully values all his assets, including the value of his business as a going concern, on his schedules, does the debtor have an absolute right to convert the case to a Chapter 13 if the Trustee decides to go after the business? Also, does anyone know someone who does appraisals of businesses? Thank you.
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