Ragsdale v. Blaw Knox Corp. (In re Hydro-Chem Processing, Inc.)

ORDER

MARGARET H. MURPHY, Bankruptcy Judge.

This adversary proceeding is before the court on Trustee’s motion for summary judgment. Trustee proposes in the motion for summary judgment a distribution, based upon the priority of the relevant liens of the claimants, of certain encumbered funds in Trustee’s possession as a result of liquidation of Debtor’s estate. The issue presents a conflict of hen priority law between Georgia state law and federal law, as a sizable IRS tax hen falls, chronologically, in the middle of four state hens which state law accords equal priority.

The following facts…