Tax Debts Don't Trump Other Claims In Ch. 13: 8th Circ.

Law360, New York (January 31, 2014, 7:37 PM EST) -- The Eighth Circuit on Friday barred a couple from paying their nondischargeable state and federal tax debts before they have paid other unsecured creditors in their bankruptcy proceeding, finding the plan discriminates against the couple's most vulnerable creditors.

If approved, the proposal would have paid the tax creditors in full and left little or nothing for other unsecured creditors in the proceedings, and the Eighth Circuit said there was no reason why a nondischargeable debt should receive special treatment over other debts. The appellate court's ruling...
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