In Re Stratford Lamps, Inc.

MEMORANDUM OPINION

BERNARD MARKOVITZ, Bankruptcy Judge.

Carl and Bella Schachter, principals of Debtor, have objected to the distribution of property proposed by the Chapter 7 trustee. They maintain that they are subrogat-ed to the rights of First Seneca Bank, the Internal Revenue Service (“IRS”), and Pittsburgh National Bank (“PNB”) because they, i.e., the Schachters, have paid debts owed by Debtor to these creditors.

For the reasons hereinafter advanced, the objection of the Schachters will be denied and the trustee will be ordered, unless stayed by Order of Court, to proceed with…