US Can't Sue Ch. 13 Trustees Over Orders: 6th Circ.

Law360, New York (January 30, 2012, 10:24 PM EST) -- Squashing a suit over Michigan bankruptcy judges' decision to order the Internal Revenue Service to send tax refunds of Chapter 13 filers directly to trustees, the Sixth Circuit said Monday that the federal government can't sue the trustees for carrying out court orders.

In vacating a lower court ruling, a three judge-panel said the harm suffered by the IRS — overwork from being required to redirect refunds to Chapter 13 trustees instead of the debtors who filed for Chapter 13 — didn't come from the trustees'...
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