2.6.a Lien Survives Bankruptcy (But ...)

• Jurisdiction: United States

a. Prepetition interest

RULE: For purposes of determining dischargeability, the interest on the tax follows the tax itself as per 26 U.S.C. § 6601(e)(1). In other words, if the prepetition tax itself is dischargeable, the interest which accrued on that prepetition tax is also dischargeable. If the tax is not dischargeable, the interest is not dischargeable.

See also: 26 U.S.C. §6601(e); 11 U.S.C. §523 (a)(8); Matter of Larson, 862 F.2d 112 (7th. Cir. 1988); In re Hartman, 110 B.R. 951 (Kan. 1990); In re Brinegar, 76 B.R. 176 (Colo. 1987); In re Standard Johnson Co., Inc., 90 B.R. 41...