The District Court for the Northern District of West Virginia found that the trustee had the power under section 724(b) to require turnover of debtor’s 2002 Lincoln LS for the purpose of selling it to pay a substantial portion of the tax debt even though the tax lienholder had not sought relief from stay for that purpose. Sheehan v. Posin, No. 11-160 (N.D. W.Va., April 23, 2012). In reversing the decision of the bankruptcy court, the district court relied on the plain language of section 724(b) concluding that the trustee’s power to require turnover under section 542 for sale of property securing a tax lien was not contingent upon the lienholder taking the affirmative step of seeking relief from stay.
Tags: TurnoverTrustee Has Power to Require Turnover of Property Securing Tax Lien
Posted by NCBRC - May 1, 2012
-
Request Assistance
Request assistance with a case.
-
Help NCBRC
NCBRC needs your support to protect the rights of consumer bankruptcy debtors. The most effective way to support NCBRC is with a direct donation.
There are many other ways to give to NRBRC:
iGive.com: When you purchase items at over 1,400 online stores, a percentage of your purchase will be donated to NCBRC. Stores include Macy’s, Melissa and Doug, Bed Bath & Beyond, Nike, Petsmart, and more. Shop and Give today!
-
Keep up with NCBRC
Thank you!
Thank you to the following organizations without whose support our work would not be possible.
American College of Bankruptcy
The American College of Bankruptcy is an honorary public service association of bankruptcy and insolvency professionals who are invited to join as Fellows based on a proven record of the highest standards of professionalism plus service to the profession and their communities. Together with its affiliated Foundation, the College is the largest financial supporter of bankruptcy and insolvency-related pro bono legal service programs in the United States.NACBA
Visit NACBA.org
The only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA has more than 3,000 members located in all 50 states and Puerto Rico.