In re Marasek, 082913 FED3, 13-1279

Docket Nº:13-1279
Opinion Judge:PER CURIAM.
Party Name:In re: JAN MARASEK; JOAN BYRON-MARASEK, Appellants
Judge Panel:Before: RENDELL, JORDAN and SHWARTZ, Circuit Judges.
Case Date:August 29, 2013
Court:United States Courts of Appeals, Court of Appeals for the Third Circuit


No. 13-1279

United States Court of Appeals, Third Circuit

August 29, 2013


Submitted for Possible Summary Action Pursuant to Third Circuit LAR 27.4 and I.O.P. 10.6 August 15, 2013.

On Appeal from the United States District Court for the District of New Jersey (D.N.J. Civ. Nos. 11-cv-03869, 11-cv-04396, 11-cv-04397, 11-cv-04398, 11-cv-04400, 11-cv-04738, 11-cv-05026, 11-cv-05027, 11-cv-05028, 11-cv-05029, 11-cv-05030, 11-cv-05569, 11-cv-05570, 11-cv-05571, 11-cv-05572, 11-cv-05573, 11-cv-05574, 11-cv-06489, 11-cv-07143, & 12-cv-00125) District Judge: Honorable Peter G. Sheridan.

Before: RENDELL, JORDAN and SHWARTZ, Circuit Judges.



In 2008, Jan Marasek and Joan Byron-Marasek, husband and wife, filed a voluntary petition for bankruptcy under Chapter 13. Initially, the Bankruptcy Court confirmed a plan, which provided that the Maraseks would sell or refinance their 12-acre property in Jackson, New Jersey, and use a portion of the proceeds to satisfy all allowed claims. In 2009, a realtor valued the property, which is commercially zoned, at $3.4 million to $3.8 million. After the Maraseks did not sell or refinance the property pursuant to the terms of the plan, one of the creditors moved to convert the case to a Chapter 7 bankruptcy. The Bankruptcy Court granted the motion in July 2011. The Maraseks appealed that order to the District Court. Previously, the Maraseks had appealed an order denying a stay; these and various other appeals were consolidated in the District Court. The Maraseks separately appealed the District Court's decision on those matters. In part, we dismissed that appeal for lack of jurisdiction; we otherwise summarily affirmed the District Court's judgment. See In re Marasek, C.A. No. 12-1234 (order entered July 30, 2013).

The District Court also denied the Maraseks' applications to waive the filing fees for the appeals to the District Court, noting that they are owners of valuable property in New Jersey and not entitled to in forma pauperis ("ifp") status. The Maraseks filed a motion for reconsideration, which the District Court denied, rejecting their argument that they did not have a beneficial interest in the property because it was subject to an inter vivos trust created in 1982. The District Court agreed with the Bankruptcy Court that the trust was severable and the Maraseks could alienate the property if...

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