Dallas bankruptcy clients have house that burns to the ground. Bankruptcy clients have two adversaries and a complicated main case. I am moving the Court for release of $10,000(of the total $90,000) for attorney fees to fight for the debtors. The IRS now claims I should not receive $10,000 of the proceeds of the house insurance which are sitting in the Chapter 7 Trustee’s Dallas trust account. They claim a huge priority tax and say I can not get attorney fees out of the trust account because they have some sort of lien and preferential right to the proceeds and the amount the debtors are to receive is zero because, of course, IRS should prevail always. If they had a federal tax lien at the time of the fire, then it probably attached to the insurance proceeds and so everybody but the IRS is likely screwed.

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