Illinois Department of Revenue v. Valentino's Restoration & Cleaning Service (In Re Valentino's Restoration & Cleaning Service)

MEMORANDUM OF DECISION

EUGENE R. WEDOFF, Bankruptcy Judge.

The adversary proceeding now before the court was filed by the Illinois Department of Revenue, seeking a declaratory judgment that certain funds held in a debtor’s bank account, subject to a tax levy by the Department, are not property of the debtor’s estate in bankruptcy. The Department has moved for judgment on the pleadings. Illinois tax levies on bank accounts can be enforced by the Department after a 20-day waiting period, during which the taxpayer has the right to challenge the levy. Thereafter, state law appears to give the…