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O'Jays Bankruptcy (I)
Highest Court N.D. Ohio
Year Ended 1994
Plaintiffs Band Member(s)
Defendants No Defendants on file
Other Broadcast Music, Inc. (BMI)
Capitol Records
Internal Revenue Service (IRS)
O'Jays
Sony Records
Short Description Eddie Levert, lead singer for the O'Jays, was earlier found to be indebted to the I.R.S. for over $2 million in tax deficiencies, and the I.R.S. secured levies against his royalty payments for publishing and record sales, for nearly the entire amount. When Levert sought Chapter 11 bankruptcy, which was converted into Chapter 7 liquidation proceedings, the I.R.S. filed a claim to ensure they could continue to apply funds obtained from their prepetition levies to the debts owed. The court held that Levert had no equity in the assets and that the I.R.S. was not adequately protected otherwise (Levert had no other way, really, to pay them back), thus, since the levied assets weren't necessary to his bankruptcy proceeding, the I.R.S. could apply proceeds from prepetition levies until paid off, at which point the proceeds to go to the bankruptcy trustee. His band mate, Walter Williams, had a similar problem ("O'Jays Bankruptcy (II)"). - LSW

Legal Issues
Bankruptcy Chapter 7 Debt Discharge & Repayment
  General Chapter Conversion
Property Intangible Property Security Interests, Garnishment & Levies
Taxation Federal Income Tax Attachment, Garnishment, Liens & Levies


Opinions In re Levert
74 A.F.T.R.2d 94-7138 / 1994 WL 760590
N.D. Ohio , October 31, 1994 ( No. 93-15170 )


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Related Searches Parties
Band Member(s) ( Plaintiff )
Broadcast Music, Inc. (BMI) ( Other )
Capitol Records ( Other )
Internal Revenue Service (IRS) ( Other )
O'Jays ( Other )
Sony Records ( Other )

Legal Issues
Bankruptcy / Chapter 7 / Debt Discharge & Repayment
Bankruptcy / General / Chapter Conversion
Property / Intangible Property / Security Interests, Garnishment & Levies
Taxation / Federal Income Tax / Attachment, Garnishment, Liens & Levies

Courts
N.D. Ohio (highest court)


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