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.
