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IN RE LILLEY

No. 95-3573. Bankruptcy No. 94-17688DAS.

185 B.R. 489 (1995)

In re Ernest R. LILLEY, Jr., Debtor. Appellant: INTERNAL REVENUE SERVICE, Defendant.

United States District Court, E.D. Pennsylvania.

August 21, 1995.

Attorney(s) appearing for the Case

John R. Crayton, McCarthy & Crayton, Bensalem, PA, for debtor Ernest R. Lilley, Jr.

Shannon L. Hough, Tax Div., U.S. Dept. of Justice, Washington, DC, for appellant I.R.S.

Edward Sparkman, Trustee, Philadelphia, PA.

MEMORANDUM

GILES, District Judge.

The Internal Revenue Service ("IRS") appeals from the May 3, 1995, Memorandum and Order of Chief Bankruptcy Judge David A. Scholl denying the IRS' motion to dismiss and confirming Ernest Lilley's Chapter 13 Plan ("the Plan").1

I. FACTUAL BACKGROUND

The underlying facts of this appeal are in all material aspects uncontroverted.

In January, 1971, the United...

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