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Milton Douglas Widick & Robin Carlotta Widick, Ch. 13, BK10-40187 (Sept. 10, 2019)

The debtors filed this show-cause motion to challenge the IRS's post-discharge seizure of tax refunds and Social Security payments to collect post-petition interest when the underlying taxes and penalties were paid in full through the confirmed Chapter 13 plan. Eighth Circuit precedent is clear that post-petition interest and penalties are non-dischargeable, and the debtors remain personally liable for that interest subsequent to bankruptcy proceedings, so the motion is denied.

Date: 
Tuesday, September 10, 2019
Judge: 
Judge Thomas L. Saladino