Skip to main content
Unpublished Paper
11 U.S.C. § 1222(a)(2)(A): DO YOU THINK THE RAIN WILL RUIN THE RHUBARB?: SOLUTIONS TO THE ISSUES RAINING DOWN ON FARMERS ATTEMPTING TO DISCHARGE POST-PETITION TAXES RESULTING FROM BANKRUPCTY
ExpressO (2012)
  • Merrill A. Hanson
Abstract
The Supreme Court should interpret section 1222 of the bankruptcy code broadly enough to discharge farmers’ post-petition income tax debts by considering the effects of the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) as a statement of Congress’s intent with chapter 12. Congress has shown leniency towards farmers’ bankruptcy reorganizations which is inferred by the structure of the code. The utility of reorganization will be undermined if Congress’s intent is ignored because farmers will be forced to convert their chapter 12 reorganizations to chapter 13 reorganizations or chapter 7 liquidations. In other words, farmers’ chapter 12 options will be illusory. This can be accomplished by sustaining the Eighth Circuit’s analysis of the disputed section, reversing the Ninth Circuit’s decision in United States v. Hall, which was based in part on the analogy that chapter 12 should be treated the same as chapter 13 because of their relationship to Internal Revenue Code Sections 1398 and 1399. This analogy fails to recognize that treating a chapter 12 bankruptcy the same as a chapter 13 bankruptcy does not give adequate consideration to the dissimilarities Congress purposefully integrated into each chapter, evidenced by the individual provisions within each separate chapter. Chapter 12’s must be afforded their own basis for determination of estate tax liability in light of Congress’s intent to give farmers and fishermen lenient treatment in bankruptcies that survived the scrutiny of the 2005 BAPCPA amendments. To hold otherwise would render the twelfth chapter redundant.
Keywords
  • chapter 12,
  • bankruptcy,
  • tax,
  • Bankruptcy Abuse Prevention and Consumer Protection Act,
  • fresh start
Disciplines
Publication Date
February 8, 2012
Citation Information
Merrill A. Hanson. "11 U.S.C. § 1222(a)(2)(A): DO YOU THINK THE RAIN WILL RUIN THE RHUBARB?: SOLUTIONS TO THE ISSUES RAINING DOWN ON FARMERS ATTEMPTING TO DISCHARGE POST-PETITION TAXES RESULTING FROM BANKRUPCTY" ExpressO (2012)
Available at: http://works.bepress.com/merrill_hanson/1/