In re Rich
Opinion
Lead Opinion
Clement, J.
MEMORANDUM
Rule 4004(c)(2) 1 authorizes the court to defer the entry of discharge in a chapter 7 bankruptcy, which extends the in personam protections of the stay. 11 U.S.C. § 362 . The debtors owe nondischargeable taxes, which will be paid when a final distribution is made upon case closure. They fear that their tax creditors will garnish their post-petition wages after the discharge issues but before the trustee distributes estate funds. Should the court defer the discharge?
FACTS
Frederick Allen Rich and Sarah Marie Rich (“Riches”) filed chapter 7 bankruptcy. James E. Salven (“Salven”) was appointed trustee. On the date they filed bankruptcy, the Riches owned a 2007 Lexus RX350 sport utility vehicle and a 2007 Toyota Canary sedan with a collective value of $15,309.00. Liens against the vehicles totaled $6,848.00. The Riches exempted $2,900.00, leaving non-exempt equity of $5,561.00. The Riches scheduled priority taxes of $2,710.00 owed to the Internal Revenue Service and $999.00 owed to the Franchise Tax Board. Both tax debts are nondischargeable. They also scheduled general unsecured debts of $174,679.00.