context: Through its freeze, the IRS did what no other creditor could do: it guaranteed payment of a pre-petition debt by withholding payment of a refund owed to the debtor. In short, the IRS's freeze, open-ended in time and excessive in scope, constituted a forbidden self-help scheme which violates the automatic bankruptcy stay.
citation_a.signal: cf.
citation_a.parenthetical: IRS moved for relief from stay after imposing administrative freeze on refund
citation_a.sentence: See United States v. Reynolds, 764 F.2d 1004 (4th Cir.1985); see also Citizens Bank of Maryland v. Strumpf, 516 U.S. 16, 116 S.Ct. 286, 133 L.Ed.2d 258 (1995) (under certain circumstances, the “temporary” withholding of payment of a debt that a creditor owes to a debtor may not violate the automatic stay); cf. In re Tillery, 179 B.R. 576 (Bankr.W.D.Ark.1995) (IRS moved for relief from stay after imposing administrative freeze on refund).
citation_b.signal: see also
citation_b.parenthetical: under certain circumstances, the "temporary" withholding of payment of a debt that a creditor owes to a debtor may not violate the automatic stay
citation_b.sentence: See United States v. Reynolds, 764 F.2d 1004 (4th Cir.1985); see also Citizens Bank of Maryland v. Strumpf, 516 U.S. 16, 116 S.Ct. 286, 133 L.Ed.2d 258 (1995) (under certain circumstances, the “temporary” withholding of payment of a debt that a creditor owes to a debtor may not violate the automatic stay); cf. In re Tillery, 179 B.R. 576 (Bankr.W.D.Ark.1995) (IRS moved for relief from stay after imposing administrative freeze on refund).