Question by boliver47: Bankruptcy: can a claim denied on appeal survive a Chapter 13 if the case is dismissed rather than discharged?
This chapter 13 has about 10 months to go. The best efforts period has passed. One creditors claim was denied by the BR court; the creditor appealed to the district court; that court denied the appeal and upheld the lower court’s ruling; the creditor appealed again to the US Court of Appeal but before being heard voluntarily dismissed the appeal. If this bankruptcy does not make it to final discharge, will the debtor still owe the claim that was denied on appeal? It was a priority tax claim for years 1998-2002. By next year this time much of the claim will probably not be entitled to priority. Thanks much.
These great answers are appreciated and I am sure there may be attorneys reading. The debtor has had to do his own research pro se because he cannot afford an attorney. Let’s put it another way: does a voluntary dismissal (without prejudice) by the creditor past the due date for the appeal brief of the appeal preclude the debtor from being granted super discharge of that same claim from the bankruptcy court? (The courts have thrown out the claim while the creditor wants it thrown back in to the BR.)
Best answer:
Know better? Leave your own answer in the comments!