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IN THE UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF MISSISSIPPI

IN RE:

BANKRUPTCY NO.

BELLA MARIA, LLC

15-01731 EE

MOTION TO PROHIBIT USE OF CASH COLLATERAL

AND FOR ADEQUATE PROTECTION
COMES now the United States of America, Internal Revenue Service, (Service)
represented herein by Gregory K. Davis, United States Attorney for the Southern District of
Mississippi, and files this Motion To Prohibit Use of Cash Collateral and For Adequate
Protection, pursuant to 11 U.S.C. sections 361, 362, and 363 and Rule 4001 of the Federal Rules
of Bankruptcy Procedure, and would show unto the Court as follows:
1.

The Internal Revenue Service (Service) is a secured creditor of the debtor in the

amount of $226,636.56, representing pre-petition WT-FICA tax liabilities, penalties and interest.
2.

Pursuant to 26 U.S.C. ' 6321, upon the assessments of the tax liabilities, federal tax

liens arose on all property and rights to property belonging to the debtor at the time of the
assessments.
3.

By virtue of notices of federal tax liens filed pursuant to 26 U.S.C. ' 6323 (f), and

equity in the debtors property to which these liens attached, the Service has a secured status in
these proceedings as defined by Bankruptcy Code ' 506 (a). Copies of the federal tax liens are

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attached to the proof of claim filed by the Service on or about June 11, 2015.
4.

Pursuant to the aforementioned federal tax liens, the Service has a valid first lien on

all otherwise unencumbered property and after acquired property that came into existence from
and after the 46th day of the filing of the tax liens which includes debtor=s cash and accounts
receivables, said tax liens having been filed beginning in September, 2014, and said first lien
continues post-petition and is superior to any other liens of any other creditors with respect to
such property.
5.

The secured property described in the aforementioned paragraph is Acash collateral@

of the Service as defined in 11 U.S.C. section 363 (a).

6.

No authority has been sought by debtor for use of the Service=s cash collateral, no

Order Authorizing the Use of Cash Collateral has been entered by this Court as required by 11
U.S.C. section 363 (c) (2) (B) and the debtor continues to use the cash collateral of the Service
without its consent as required by 11 U.S.C. section 362 (c) (2) (A).
7.

Debtor has failed to provide adequate protection to the Service for the diminishing

value of the amount of the security to which its lien attaches and such adequate protection is
required.
8.

Pursuant to 11 U.S.C. section 363 (c) (2) and (e), the debtor should be prohibited

from further using the cash collateral subject to the federal tax liens unless and until the debtor
provides adequate protection of such interests to the Service.
WHEREFORE, the United States prays that the Court set this matter down for Hearing
and at such Hearing Order that debtor is prohibited from using the cash collateral of the Service.
In the alternative, the Service prays that the Court Order the debtor to provide adequate
protection, in the form of monthly cash payments beginning immediately, to the Service for the

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continued use of its cash collateral.

The United States prays for any and all relief to which it is

entitled.

Respectfully submitted,

GREGORY K. DAVIS
United States Attorney
By:/s/David N. Usry
David N. Usry
Assistant United States Attorney
U.S. Department of Justice
501 East Court St., Suite 4.430
Jackson, MS 39201
MS Bar # 5775
David.Usry@usdoj.gov

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CERTIFICATE OF SERVICE

IT IS HEREBY CERTIFIED that I have filed electronically and/or mailed, and thereby
served, the foregoing Motion this the 10th day of July, 2015, on those qualified to receive same,
including but not limited to, the following:

J. Walter Newman, IV
wnewman95@msn.com
Ronald McAlpin
Assistant United States Trustee
Ronald.McAlpin@usdoj.gov
All creditors listed on the Matrix attached hereto.

/s/ David N. Usry

David N. Usry
Assistant United States Attorney
U.S. Department of Justice
501 East Court St., Suite 4.430
Jackson, MS 39201
MS Bar # 5775