3.23 Co-Liable Person Stay For Taxes

• Jurisdiction: United States

3.23 EFFECT OF DISMISSAL OF CASE

Where the case is dismissed prior to completion of the plan and without final discharge, the parties are restored to the status that existed before the case was filed, with adjustments for any payments made to the respective creditors. Postpetition interest continues to accrue behind the scenes as it were, even if not being paid through the plan, on unsecured tax claims, and penalties would be extinguished for some tax claims upon final discharge, if the case is dismissed the interest and penalties that would have accrued but for the filing of the case spring back into...