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MMI sent respondent seven checks for payment pursuant to the
December 15, 1978, payment agreement. Only six of those checks
were honored.
On March 29, 1979, MMI’s creditors filed an involuntary
bankruptcy petition against MMI in the U.S. Bankruptcy Court for
the Middle District of Pennsylvania. MMI’s bankruptcy petition
was filed under chapter 11 of the Bankruptcy Act of 1898
(Bankruptcy Act), as amended. MMI’s case was later converted to
a chapter 7 case.
On April 25, 1979, Charles J. DeHart III, Esq., was
appointed receiver of MMI.
On May 21, 1980, respondent issued Mr. DeHart a notice of
levy (1980 notice of levy). The 1980 notice of levy indicated a
total liability of $246,789.26, composed of a liability for 1971
of $153,002.11, and a liability for 1972 of $93,787.15.
On June 10, 1981, respondent filed an amended proof of
claim, claim 134 (amended proof of claim), pursuant to a priority
claim under section 64a(5),2 based on the August 15, 1978, notice
of levy and the December 15, 1978, payment agreement, in the
amount of $232,427.35. The amended proof of claim stated that
interest would accrue at a rate of $45.55 per day.
2MMI’s bankruptcy case was filed under the Bankruptcy Act of
1898. However, the amended proof of claim does not indicate
whether sec. 64a(5) relates to the Bankruptcy Act of 1898.
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