wanttaja
En-Route
I'm going to guess that since the negotiated amount was insignificant, the IRS didn't come after him for taxes on the allegedly converted assets which paid his personal bills, and for the personal gain on sale of the Mooney...the trustee claimed the value as several hundred thousand dollars.
The weird thing is, that the amount Campbell eventually paid ($18,561) was within a couple hundred dollars of the amount he owed the IRS, according to the paperwork filed at the time the settlement was made. According to the "Amended Affidavit of Default" filed by the Trustee on 15 May 2000:
"5. The amount due and owing the bankruptcy estate:
Note: $7,375.00
Claim #3: 0.00 (Per conversation with Citrus and Chemical
employee on 5/15/00, this claim has been paid in full
Claim #14: 18,296.90 (Per amended Proof of Claim filed by IRS"
I don't pretend to fully understand the legal paperwork from the Bankruptcy case. But it looks to me that he made payments until what the IRS was owed was covered, then stopped. The IRS probably would have forced a default judgement if they hadn't been satisfied; whoever had the note for $7,375 probably didn't care by then.
Ron Wanttaja