GCK On Law
Courts Split on Whether Pursuit of Petition Claims in the Bankruptcy Court Violate the Automatic Stay
There is conflicting case law as to whether it violates the automatic stay for a creditor to sue the debtor in bankruptcy court on a prepetition claim, for example in an adversary proceeding. Although the language of Section 362(a)(1) of the Bankruptcy Code clearly...
Piercing the Corporate Veil
In general, a corporation is a legal entity that exists separately and distinctly from its shareholders, officers and directors, and such parties are normally not subject to corporate liabilities. Fontana v. TLD Builders, Inc., 840 N.E.2d 767, 775 (2005). See also,...
Positive IRS Policy Change to Offer in Compromise Acceptance Procedures Helps Taxpayers with Tax Liabilities
Offers in Compromise (“Offers”) remain a vital form of relief for taxpayers who cannot afford to pay their IRS taxes in full. Offers are governed by a strict program whereby qualifying taxpayers may attempt to settle their debt to the IRS based on doubt as to...
Bankruptcy Court Retention of Jurisdiction over Adversary Proceedings Following Dismissal of the Underlying Bankruptcy Case Pursuant to Section 349
According to In re Gustafson, 316 B.R. 753 (Bankr. S.D.Ga. 2004) the dismissal of a bankruptcy case will normally result in the dismissal of the pending adversary proceedings because federal jurisdiction in premised upon the nexus between the underlying bankruptcy...
Courts Differ on Resolving Potential Conflict between IRC §6402(a) and Bankruptcy Code §522(c)
Section 6402(a) of the Internal Revenue Code provides the Secretary of the Treasury with the discretion to set-off “any” tax overpayment against a taxpayer’s preexisting tax liabilities. Section 553 of the Bankruptcy Code, in turn, allows the IRS to set off a tax...