3.21 To Include Postpetition Tax Claims

JurisdictionUnited States

3.21 HARDSHIP DISCHARGE


In some cases the debtor may be entitled to a hardship discharge without completing the payment plan. 11 U.S.C. § 1328 (b). But caution - unlike the ordinary discharge a hardship discharge does not discharge either priority taxes or taxes excepted from discharge under § 523(a). 11 U.S.C. § 1328(c).

TRAP: A hardship discharge eliminates the discharge for any priority tax.

Held, a hardship Chapter 13 discharge does not discharge debtor from withholding taxes due the IRS even if IRS...

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