District Court: Chapter 13 Debtors had Absolute Right to Dismiss Case, even thought they Concealed the Sale of their Homestead for 3 Years

District Court: Chapter 13 Debtors had Absolute Right to Dismiss Case, even thought they Concealed the Sale of their Homestead for 3 Years

Chapter 13 trustee Viegelahn appealed the Bankruptcy Court for the Western District of Texas’ orders granting debtors’ motion to voluntarily dismiss their Chapter 13 case and dismissing as moot the trustee’s motion to modify the confirmed plan.

The trustee argued that the Bankruptcy Court erred in allowing the debtors to dismiss their case, since the debtors acted in bad faith and cited the  Supreme Court’s decision in Marrama v Citizens Bank of Massachusetts.

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