Bankr. No.:
94-10100
Chapter:
11
Date of Decision:
January 10, 1995
Issue:
Bank. Nos. 94-10099 and 94-10100. Whether bank account subject to a pre-petition IRS levy was estate property?
Ruling:
The bank accounts were estate property. Under 26 U.S.C. ยง 6332(c), the bank had to hold the funds twenty-one days before surrendering them to the IRS. Debtor filed its petition within the twenty-one days. Debtor did not lose ownership of the accounts during the twenty-one days because the IRS continued to consider as income to Debtor the interest earned during the twenty-one days. IRS as entitled to adequate protection if Debtor used the funds.
Full Bankruptcy Court Decision:
