ASSIGNMENT
1.Krieger is a 53-year-old woman who has not held a job in over twenty-five years since she left the workforce to raise a family. Prior to that period, she did not earn more than $12,000 a year in her working career. Krieger is living with her mother, age seventy-five, in a rural community where few jobs are available. Between the two of them, she and her mother receive only a few hundred dollars from governmental programs every month. Krieger is too poor to move in search of better employment prospects elsewhere. Her car needs repairs, and she lacks Internet access, both of which hamper a search for work. Having no assets or income, Krieger filed for, and is entitled to receive, a discharge in bankruptcy. Her largest creditor—Educational Credit Management, which acts on behalf of some Federal loan guarantors—seeks to exclude Krieger’s student loans from the discharge. Explain whether Krieger should be discharged from her educational loans.
2. Robert Marrama filed a voluntary bankruptcy petition under Chapter 7. In the filing, Marrama made a number of statements about his principal asset, a house in Maine, which were misleading or inaccurate. He reported that he was the sole beneficiary of the trust that owned the property, and he listed its value as zero. He also denied that he had transferred any property other than in the ordinary course of business during the year preceding the filing of his petition. In fact, the Maine property had substantial value, and seven months prior to filing his petition, Marrama had transferred it into the newly created trust for no consideration. Marrama later admitted that the purpose of the transfer was to protect the property from his creditors. The trustee stated that he intended to recover the Maine property as an asset of the estate. Thereafter, Marrama sought to convert to Chapter 13, claiming that he had an absolute right to convert his case. Both the trustee and Marrama’s principal creditor objected, contending that the request to convert was made in bad faith. Explain whether Marrama should be permitted to convert the case to Chapter 13.
