Meehan v. Commonwealth (In Re Barsky)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

The issue before us is whether the trustee of a debtor in a chapter 11 proceeding is entitled to a turnover of the debtor’s inventory seized in execution proceedings prior to bankruptcy in an action by the defendant, Commonwealth of Pennsylvania, to enforce a lien for unpaid sales taxes. Because we find that the inventory is required by the debtors to continue their business, effectuate a plan of reorganization and avoid liquidation in bankruptcy, we will grant the requested relief.

FINDINGS OF FACT

1. The defendant, Commonwealth of Pennsylvania…