United States v. Robert K. Michaels and Margaret P. Michaels

The Internal Revenue Service obtained a summary judgment for funds held by the district court to have been erroneously paid to defendants. We affirm on the ground that tax refunds were paid by the Government to the taxpayers at a time when they were legally payable to the taxpayers’ bankruptcy trustees.

On July 11, 1980, an involuntary petition for bankruptcy was filed under Chapter 7 of the Bankruptcy Code against taxpayer Robert Michaels. Defendant Robert Mi-chaels was denied a discharge as he was found to have fraudulently transferred assets of the estate, made false oaths on accounts with…