11 U.S.C. § 1232 — Claim by a governmental unit based on the disposition of property used in a farming operation
submitted 9 years ago by Pub. L. 115-72 to r/title-11-BANKRUPTCY · 538 words · no verdicts yet
Certain unsecured government claims tied to disposing of property used in a debtor’s farming operation are treated as prepetition, nonpriority claims that must be covered by the plan and discharged under section 1228. The section sets liquidation values, claim treatment, notice, filing deadlines, and claim allowance rules.
(a) A governmental unit’s unsecured claim* against the debtor* or estate is covered if it arose before the petition, or arose after the petition and before discharge under section 1228, because property used in the farming operation* was sold, transferred, exchanged, or otherwise disposed of. Such a claim (1) is treated as an unsecured claim arising before the petition; (2) gets no priority under section 507; (3) must be provided for in a plan; and (4) is discharged under section 1228. (b) For sections 1225(a)(4), 1228(b)(2), and 1229(b)(1), the amount that would be paid in a chapter 7 liquidation is the amount a chapter 7 estate would pay if this were a prepetition unsecured claim with no section 507 priority. (c) For sections 523(a), 1228(a)(2), and 1228(c)(2), the claim is not treated as a claim described in section 523(a)(1)(A) or (B). (d)(1) A governmental unit may file a proof of a covered claim arising after the petition. (2) If the debtor files a related tax return after the petition, the debtor must serve the tax-collecting governmental unit with notice at the address and in the manner designated in section 505(b)(1). The notice must say that a petition was filed, identify the court’s name and location, state the claim amount, and include the return and supporting calculation documents. (3) After notice, the governmental unit may file a proof within 180 days. If it does not, the debtor or trustee may file a proof consistent with the notice, and the governmental unit may not amend that proof. (4) The claim is determined and allowed under section 502(a), (b), or (c), or disallowed under section 502(d) or (e), as if it arose immediately before the petition.
Any unsecured claim* of a governmental unit against the debtor* or the estate that arises before the filing of the petition, or that arises after the filing of the petition and before the debtor’s discharge under section 1228, as a result of the sale, transfer*, exchange, or other disposition of any property used in the debtor’s farming operation*—
shall be treated as an unsecured claim arising before the date on which the petition is filed;
shall not be entitled to priority under section 507;
shall be provided for under a plan; and
shall be discharged in accordance with section 1228.
For purposes of applying sections 1225(a)(4), 1228(b)(2), and 1229(b)(1) to a claim described in subsection (a) of this section, the amount that would be paid on such claim if the estate of the debtor were liquidated in a case under chapter 7 of this title shall be the amount that would be paid by the estate in a chapter 7 case if the claim were an unsecured claim arising before the date on which the petition was filed and were not entitled to priority under section 507.
For purposes of applying sections 523(a), 1228(a)(2), and 1228(c)(2) to a claim described in subsection (a) of this section, the claim shall not be treated as a claim of a kind specified in subparagraph (A) or (B) of section 523(a)(1).
A governmental unit may file a proof of claim for a claim described in subsection (a) that arises after the date on which the petition is filed.
If a debtor files a tax return after the filing of the petition for a period in which a claim described in subsection (a) arises, and the claim relates to the tax return, the debtor shall serve notice of the claim on the governmental unit charged with the responsibility for the collection of the tax at the address and in the manner designated in section 505(b)(1). Notice under this paragraph shall state that the debtor has filed a petition under this chapter, state the name and location of the court in which the case under this chapter is pending, state the amount of the claim, and include a copy of the filed tax return and documentation supporting the calculation of the claim.
If notice of a claim has been served on the governmental unit in accordance with paragraph (2), the governmental unit may file a proof of claim not later than 180 days after the date on which such notice was served. If the governmental unit has not filed a timely proof of the claim, the debtor or trustee may file proof of the claim that is consistent with the notice served under paragraph (2). If a proof of claim is filed by the debtor or trustee under this paragraph, the governmental unit may not amend the proof of claim.
A claim filed under this subsection shall be determined and shall be allowed under subsection (a), (b), or (c) of section 502, or disallowed under subsection (d) or (e) of section 502, in the same manner as if the claim had arisen immediately before the date of the filing of the petition.
Source credit: (Added Pub. L. 115–72, div. B, § 1005(a), Oct. 26, 2017, 131 Stat. 1232.)
- 2017Enacted · Pub. L. 115-72 · 131 Stat. 1232
A history note hasn’t been published yet. The record shows enactment by Pub. L. 115-72 on 2017-10-26.
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