I realize that as soon as I receive the discharge, the IRS will come back at me for non-dischargeable taxes remaining. I'm not worried about that because the majority of the tax debts are tax liens, and those will be paid off via either 1) the sale of the commercial property to an outsider, or via 2) the Court accepting my buy-back offer for the commercial property, (over the Trustee's objections) which contains $100,000 in cash with which to pay the IRS off.
My concern is this: I have to convince the Court (over the Bankruptcy Trustee's objections) to accept my offer to buy back the property, by showing that my offer is better for the unsecured creditors than the Trustee's plan to hold the property, collect rents, and eventually sell it for some unknown amount, subject to the secured debts AND subject to my §522(d)(5) exemptions.
To accomplish this, I need to know:
Question 1: Situation: Debtor owns commercial real estate worth $350,000, and claims §522(d)(5) exemptions of $17,000 against it (under FEDERAL bankruptcy law) that she doesn't use to exempt her residence. Trustee sells property for $350,000. Where in 11 U.S.C. does it state how and when (the order in which) the Trustee must pay the debtor the value of her §522(d)(5) exemptions ($17,000) claimed from the sale proceeds (of $350,000) of non-exempt real estate?
(Your case law citations, McIntyre v U.S. and U.S. v Shanbaum, did not address the order 522(d)(5) exemptions had to be paid from sales proceeds of non-exempt assets sold by a bankruptcy Trustee, or whether (d)(5) exempt amounts owed to Debtor were, in fact, paid before unsecured tax debts. McIntyre and Shanbaum had to do with the fact that the IRS has the authority to levy pension benefits to satisfy tax liens. Also, the U.S. v Heffron case held that a homestead exemption prescribed by state law is ineffective against a federal tax lien. That also probably doesn't apply in my case, because my "homestead exemption" is not prescribed by state law, but by federal law, per 11 U.S.C. §522(d)(5), however, it's logical that a secured tax lien against a piece of property sold by the Trustee would be paid before a debtor's (d)(5) claims... I'd just like to have the 11 U.S.C. section that references anything about the Trustee paying (d)(5) claim amounts to the debtor.)
Question 2: Assuming, as you stated, that §522(d)(5) exempt amounts are paid AFTER secured IRS tax liens, but BEFORE any other UNsecured creditors' claims (including IRS unsecured priority tax claims), from the sale proceeds of non-exempt property sold by the Trustee.... then, if the Trustee told me that my claiming (d)(5) exemptions against the property "wouldn't do me any good" because the "sale proceeds won't reach that far," then basically what he's saying is that there won't be any proceeds available to distribute to UNsecured creditors either. In that case, is there any case law to support the assertion that the Trustee should not "administer the asset" (i.e., should NOT sell the property), if all he's going to do is pay off "secured creditors" with NOTHING going to unsecured creditors? Any case law about this would help me present my case to the Court to force the Trustee to accept my buy-back offer, which provides $44,000 MORE than what's owed to secured creditors.... since he shouldn't be administering the asset in the first place if it won't benefit the unsecured creditors. He's only admistering the asset in order to increase his own commission.