Attorney-at-Law

JUST COUNTING THE DAYS

In Uncategorized on 01/01/2016 at 00:11

No, I’m not counting the days until our next vacation. Here’s a post that didn’t make it in  time.

Ch J Michael B. (“Iron Mike”) Thornton shows us how to figure if a petition in Tax Court is timely, when a bankruptcy petition is filed under one chapter of the Bankruptcy Code, and then is transferred and refiled under another, with a delay in between.

Best to have a calendar in front of you as you tiptoe through Lillian Chinedum Ajayi, Docket No. 19029-15S, filed 12/29/15. Not even a designated hitter, this; come on, Ch J Iron Mike, take some pity on us poor bloggers.

Lil filed Ch 13 in Middle District FL. The BJ there gives Lil a chance to convert to a Ch 7, by tossing her case, but staying the toss fourteen days (count ‘em, 14 days, because Ch J Iron Mike does).

Lil flies north, and fetches up in NJ, filing the Ch 7 on the magic fourteenth day she got from the MDFL. She gets discharged.

After the usual “we got limited jurisdiction but you get 60 days after a Bankruptcy discharge,” Ch J Iron Mike adds the fourteen days Lil got from MDFL.

But IRS says, what about 11 USC 362(c)(3)(A)? After all, “Under 11 U.S.C. section 362(c)(3)(A), If a bankruptcy case is filed by an individual debtor under Chapter 7, 11, or 13, and if a bankruptcy case of the debtor was pending within the preceding one-year period, but was dismissed, the automatic stay with respect to any action taken with respect to a debt or property securing such debt shall terminate with respect to the debtor on the 30th day after the filing of the later case. See Klein v. Commissioner, 135 T.C. 166, 173-175 (2010).” Order, at p. 2.

But IRS overlooks the Section 6213(f)(1) 60-day free kick. Even if the automatic stay terminates, Lil still has her 60 days.

And don’t forget the fourteen days. Lil filed the Ch 7 petition timely, and though the 30-day end to the automatic stay kicked in, so did her 60 days to petition after NJ discharged her.

Lil beat the clock.

 

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