Federal Bankruptcy Court For Eastern District of Michigan Had No Jurisdiction Regarding IRS Orders
In a recent case, The US District Court Eastern District Of Michigan found that sovereign immunity was not waived as to proceedings against the IRS redirecting tax refunds to be paid to chapter 13 Trustees instead of to the debtors.
It was found that the bankruptcy court had no jurisdiction and authority to enter chapter 13 confirmation orders ordering the IRS to redirect tax refunds to be paid to chapter 13 Trustees instead of to the debtors.
The Court declared that the chapter 13 Trustees for the Eastern District of Michigan may not seek to enforce any provisions of chapter 13 plan confirmation orders entered by the United States Bankruptcy Court for the Eastern District of Michigan that compel the IRS to pay future tax refunds claimed by chapter 13 debtors to the chapter 13 Trustees instead of to the debtors.
You can read the Court’s full opinion here.
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- Notice re Chapter 13 Tax Refunds
- Hours For The United States Bankruptcy Court Eastern District of Michigan
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