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