Schafer and Weiner, PLLC Obtain $500,000 State Tax Refund

May, 2017

In a chapter 11 case before the United States Bankruptcy Court for the Eastern District of Michigan, the State of Michigan, Department of Treasury filed a proof of claim consisting of withholding tax, single business tax, interest and penalties. In connection with a confirmed plan of reorganization, the debtor agreed to make payments consistent with a prepetition consent agreement. John Stockdale, Jr. filed an objection to the State’s tax claim. As a result of the objection to claim and on the eve of the hearing on the objection, John negotiated a resolution that deemed the priority tax claim paid, waived interest on the priority tax claim, and ordered a $500,000 tax refund.