West
West v. United States (In re West)
Opinion
Lead Opinion
Hall, J.
Chapter 13 debtors Beverly West and Robert Worthen appeal the district court’s reversal of bankruptcy court orders denying priority to tax claims of the Internal Revenue Service. The district court held that the debtors’ prior Chapter 13 case suspended Bankruptcy Code § 507(a)(7)(A)(ii)’s 240-day priority period until six months after the debtors dismissed that case. We affirm.
I. Background
On June 13,1988, the IRS assessed income taxes for the years 1982 through 1984 against Beverly and Robert Worthen. Two-hundred and twenty days later, on January 19, 1989, the Worthens filed a joint petition under Chapter 13 of the Bankruptcy Code. On May 30, 1990, the Worthens voluntarily dismissed their case. They divorced shortly thereafter. On July 27,1990, fifty-eight days after dismissing their joint case, Beverly West and Robert Worthen filed individual Chapter 13 petitions.
The IRS subsequently filed proofs of claim in the West and Worthen cases for the 1982— 1984 income taxes. The debtors each filed Chapter 13 plans that provided for payment of the IRS claims on a pro rata basis with the general, unsecured claims. The IRS objected to confirmation on the ground that Bankruptcy Code §…