Nomellini
Nomellini v. United States Internal Revenue Service (In re Nomellini)
Opinion
Lead Opinion
Davila, J.
ORDER AFFIRMING UNITED STATES BANKRUPTCY COURT MEMORANDUM DECISION RE: DEFENDANT’S MOTION TO DISMISS AND PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
I. INTRODUCTION
In this bankruptcy appeal, chapter 13 debtor Drew Nomellini (“Debtor”) seeks a determination of the Internal Revenue Service’s (“IRS”) interest, if any, in the proceeds of the sale of Debtor’s real property located at 520 St. Claire Drive, Palo Alto, California (the “Real Property”). The appeal presents a single issue: whether the Bankruptcy Court correctly determined that confirmation of the Debtor’s chapter 13 plan, either originally or as modified, did not strip or otherwise modify the in. rem rights of the IRS arising from a pre-petition tax lien recorded against the debtor’s Real Property. This Court affirms the Bankruptcy Court’s determination.
II. BACKGROUND
After Debtor, a construction contractor, failed to pay federal income taxes for tax years 2003 through 2006, the IRS filed a notice of Federal Tax Lien (“NFTL”) with Santa Clara County, California. The NFTL gave notice of a statutory lien in favor of the United States against Debtor’s real and personal property to secure payment of Debtor’s unpaid tax…