May 4, 2008
Update on Marrama: Post-Supreme Court Goings-On
I took a gander at the docket on Robert Marrama today wondering what had happened since the Supreme Court ruled last year that he did not have an absolute right to convert his case to chapter 13.
On October 23, 2007 the chapter 7 trustee filed his final report advising the court that he collected some $269,000, gave $150,000 of that to a secured creditor, $9,000 to an auctioneer, and after some other expenses, there was $107,000 left. Those funds of course will go entirely to the trustee, his counsel and his accountant who, in fact, had to take a haircut on their fees to the tune of about half.
The debtor's discharge is unclear. There is an order entered on November 13, 2007 granting the discharge. But there is also an Order entered on April 28, 2004 granting Citizens Bank's MSJ in its adversary proceeding seeking denial of the discharge. The trustee also filed a 727 complaint but later dismissed it when the Citizen's order became final.
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I don't know if the secured creditor was Citizens, but if so, I would think they would withdraw their adversary proceeding once paid. Does anyone have any information on that?
Posted by: KD | May 4, 2008 11:54:04 AM
Marrama's attorney (the undersigned) states that no creditors got paid anything. As the first post stated, all estate assets went to pay the trustee and his professionals, a result that I predicted a long, long time ago. (Anyone surprised by that result raise your hand. I don't see any hands!)
Posted by: David Baker | May 5, 2008 7:00:49 AM
If you will look at Citizen group activists such as www.bankruptcymisconduct.com or www.fraudonthecourt.blogspot.com you will see the tide is turning on what Trustee's can and cannot get away with.
Due to the Net and PACER, previously hidden, closed door carvings of an estate are now public.
As in the decision of In re Arkansas remarked, by the Third Circuit restatement of the Congressioanl Premise, bankruptcy in reality works more for attorneys [trustees] than for creditors. One must always be on the lookout for a "bankruptcy ring".
They need the facts to be silenced under cronyism, pretense and "color of law". Citizens need the Facts, the Truth, to be seen and heard.
Stand up and fight for your American way of life or LET IT GO!
Posted by: Laser Haas | May 5, 2008 3:19:32 PM