IRS Objects To Graceway's Ch. 11 Plan Over Setoff Rights
The IRS says in its objection that the government, like other creditors, retains the right to setoff mutual debts, and that Graceway's proposal contains no provision for those rights.
“Such treatment is impermissible because Section 553 of the Bankruptcy Code preserves the right of setoff in bankruptcy as it exists outside bankruptcy … neither expanding nor constricting it,” the...
To view the full article, register now.