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MATTER OF CHANTLER BAKING CO.

Civ. A. No. 77-211.

436 F.Supp. 169 (1977)

In the Matter of CHANTLER BAKING COMPANY, Bankrupt. UNITED STATES of America, Plaintiff, v. John E. REYNOLDS, Trustee of Estate of Chantler Baking Company, Bankrupt, Defendant.

United States District Court, W. D. Pennsylvania.

July 18, 1977.

Attorney(s) appearing for the Case

Marc E. Albert, Trial Atty., Tax Div., Dept. of Justice, Washington, D. C., Joel B. Strauss, Asst. U. S. Atty., Pittsburgh, Pa., for plaintiff.

William H. Markus, and Edmond B. Smith, Jr., Markus, Riethmuller & Smith, Pittsburgh, Pa., for trustee.

Lee C. McCandless, McCandless, Krizner & Kemper, Butler, Pa., for bankrupt.

OPINION

JOHN L. MILLER, District Judge.

In this straight bankruptcy proceeding the United States seeks to review the Bankruptcy Court's order which denied its petition for payment of penalties and post-bankruptcy interest.1 The appeal fosters this general question:

May the United States collect penalties and post-petition interest from proceeds realized by the sale of the debtor's property which, while levied upon by...

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