Birdsell v. Nichols (In Re Birdsell)

OPINION

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether a debtor’s prepetition application of his right to tax refund to postpetition tax obligations constitutes an asset that must be turned over to the trustee pursuant to Bankruptcy Code § 542, 1 even though on the petition date the debtor could not have recovered such asset from the IRS, and it was ultimately used to satisfy postpetition tax obligations. The Court concludes that it was such an asset on the petition date, even though not immediately realizable, and that the Debtor must therefore deliver to the Trustee the value…