United States v. Van Vactor (In Re Crouch)

ORDER DISTRIBUTING CROP PROCEEDS

DONAL D. SULLIVAN, Bankruptcy Judge.

The government filed a complaint to determine the disposition of the proceeds of crops harvested during the chapter 11. These proceeds resulted from several cuttings of alfalfa which was a perennial crop seeded by the debtors prior to the filing of chapter 11. The debtors filed chapter 11 on February 1, 1983 and are Christmas Valley farmers who, after approximately two growing seasons, failed to achieve confirmation of a plan of reorganization. The government claims a lien on the proceeds arising from a pre-petition security…