In re Brookmart

MEMORANDUM AND ORDER

Late in the month of January, 1969 Brookmart issued checks totaling $2,721.39 in favor of the Internal Revenue Service for payment of withholding and FICA taxes for the fourth quarter of 1968, plus FUTA taxes for the calendar year 1968.

On February 5, 1969 Brookmart made a general assignment for the benefit of creditors. Immediately the Assignee closed the Brookmart bank account, withdrawing from the account the sum of $6,088.90. Following the assignment and the closing of the bank account, the above-described checks for $2,712.39 in favor of Internal Revenue Service were presented for payment and were dishonored by the bank.

On April 11, 1969 an involuntary petition in bankruptcy was filed against Brookmart, and on May 6, 1969 Brook-mart was adjudicated bankrupt. On July 17, 1969 the Assignee turned over to the Trustee in Bankruptcy all the books, records and property belonging to Brookmart, including cash in the sum of $30,493.24. A first meeting of creditors was held July 21, 1969.

A claim for taxes due in the amount of $5,714.14 was filed by Internal Revenue Service on February 4, 1970, too late to participate in dividends paid to creditors of the…