[CLBS] allocation of state tax receipts

[Aaron Tolson]

I have a chapter 7 client who owed 2014 state taxes when he filed.  The
bankruptcy estate generated funds to pay that claim, but the state levied
after the discharge and got 2,000, which they applied to 2014 and had a
small claim left in the case.  In the meantime debtors filed for 2015 and
owed 2,000.

It makes sense to me that the state could simply claim the 2014 tax through
the estate, apply the post-petition levy to 2015, that way the state gets
all their taxes and don't have to chase the debtor down for the money.  But
the state says they can't change the way the allocated the recovery funds.

Has anyone seen a bankruptcy court order the bankruptcy estate to pay the
full priority claim despite the post-petition collections at the request of
the debtor?
-- 
Aaron J. Tolson
2677 E. 17th St. #300
Ammon, ID. 83406
208-228-5221

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