In re Pugh

MEMORANDUM DECISION ON DEBTOR’S OBJECTION TO INTERNAL REVENUE SERVICE’S MOTION FOR RELIEF FROM THE AUTOMATIC STAY

MARGARET DEE McGARITY, Bankruptcy Judge.

The United States, on behalf of the Internal Revenue Service, filed a motion for an order modifying the automatic stay imposed by 11 U.S.C. § 362(a)(7), to allow the IRS to set off the debtor’s postpetition claim to a tax overpayment against prepet-ition priority tax liabilities of the debtor due the IRS, pursuant to 11 U.S.C. § 553(a). The debtor opposed the motion on the grounds that the tax obligation was to be paid in full through her…