Joseph A. Loftus - Page 4

                                        - 3 -                                         
          The Bankruptcy Proceeding                                                   
               In February of 1998, petitioner filed a petition for relief            
          under chapter 7 of the United States Bankruptcy Code, 11 U.S.C.             
          sections 101-1330 (2000), and received a discharge of                       
          dischargeable debts on June 9, 1998.                                        
               Respondent’s Insolvency Section prepared and filed with the            
          bankruptcy court an original and an amended proof of claim, as an           
          unsecured priority claimant, on behalf of the Internal Revenue              
          Service (IRS).                                                              
               During the bankruptcy case, the chapter 7 trustee applied to           
          the court for authority to pay State sales taxes incurred by the            
          estate, postpetition, as administrative expenses.  No party filed           
          an objection to the trustee’s application.2                                 
               The trustee filed a notice of final report, and a final                
          report before distribution on February 16, 2001, showing that               
          after payments for the secured claim and for administrative                 
          expenses, there would be nothing remaining in the estate for                
          distribution for unsecured priority claims and general unsecured            
          claims.  No objection to the final report before distributions              
          was filed by any party.  Therefore, respondent did not receive              
          any distribution from the bankruptcy estate for the prepetition             
          unsecured priority claim.                                                   

               2 As it was later determined that the estate had no                    
          liability for State sales taxes, they were not included in the              
          trustee’s final report of distribution.                                     

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011