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lien attaching to the sale proceeds.1 Subsequently, the
bankruptcy trustee filed a motion to dismiss the case for failure
to file a repayment plan,2 and Barbara Drake and petitioner filed
a Motion for Authority to Disburse Funds.3 The court granted the
motion to dismiss and issued an order mooting the Motion for
Authority to Disburse Funds. Upon the dismissal of the case on
June 30, 1999, the attorney representing Barbara Drake and
petitioner in the bankruptcy proceedings distributed to Barbara
Drake and petitioner sale proceeds in the amount of $151,139.74.4
Petitioner subsequently transferred, for no consideration, the
sale proceeds to his sons, Darren Drake and Gregory Drake, Jr.
On October 6, 1999, Notices of Federal Tax Lien were filed
against Barbara Drake and petitioner with respect to their 1994,
1995, and 1997 tax years.
On July 19, 2000, respondent mailed to Barbara Drake and
petitioner a Final Notice, Notice of Intent to Levy and Notice of
Your Right to a Hearing, with respect to their 1991, 1992, 1994,
1The sale yielded proceeds of $161,250.65.
2Pursuant to 11 U.S.C. sec. 1321 (2000), a debtor in a ch.
13 case must file a repayment plan. Pursuant to 11 U.S.C. sec.
1307, the bankruptcy court may dismiss a case for failure to file
a timely repayment plan.
3The motion provided for sale proceeds to be distributed to
creditors, including respondent.
4This amount represented the sale proceeds less legal fees
and expenses. We note that Barbara Drake and petitioner were
represented in the bankruptcy proceedings by Neal E. Satran, who
is not involved petitioner’s sec. 6330 proceedings.
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