In re Bernardo

Ruling: 
Interim distribution of sale proceeds of property jointly owned by debtor and non-debtor spouse denied where proceeds were subject to levy by IRS.
Procedural posture: 
A trustee filed a motion for an order authorizing the interim distribution of the net proceeds from a sale of real property jointly owned by a chapter 7 debtor and his non-debtor spouse to the non-debtor spouse pursuant to 11 U.S.C.S. § 363(j). The United States of America, on behalf of the Internal Revenue Service (IRS), objected to the motion on the grounds that the proceeds were subject to IRS levy pursuant to 26 U.S.C.S. §§ 6321 and 6331.
Issue: 
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Consumer case opionion summary, case decided on January 05,2010, LexisNexis #0210-076