In re Fialkowski

OPINION AND ORDER

MICHAEL J. KAPLAN, Bankruptcy Judge.

The question before the Court is arcane and narrow. “May a Chapter 7 Trustee use 11 U.S.C. § 724(b)1 to administer *591property that is exempt for bankruptcy purposes, but is also subject to an Internal Revenue Service tax lien (and, in this case, a levy as well)?”

The Debtor argues a much broader proposition. He argues* that if a Debtor files a Chapter 7 Petition and is allowed an exemption as to property that is subject to an IRS lien (and, in this case, a levy), then the exemption places the property outside the 11 U.S.C. § 541 estate, and…