§1232 Claim by a governmental unit based on the disposition of property used in a farming operation

Summary

Treats any unsecured claim by a government agency against a farmer or the farm estate that comes from selling, transferring, or otherwise disposing of farm property as if the claim existed before the bankruptcy petition was filed (or if it shows up after filing, before the debtor’s discharge under section 1228). Such a claim will be treated as a regular prepetition unsecured claim, will not get priority under section 507, must be dealt with in the bankruptcy plan, and will be discharged according to section 1228. For plan and discharge tests in sections 1225(a)(4), 1228(b)(2), and 1229(b)(1), the amount paid on the claim is what a Chapter 7 liquidation would pay if the claim were a prepetition unsecured nonpriority claim. The claim is not treated as the special kinds listed in section 523(a)(1)(A) or (B) for nondischargeability rules. A government unit may file a proof of claim for a postpetition claim. If the debtor files a tax return after filing and the claim comes from that return, the debtor must notify the tax agency as required by section 505(b)(1) and include the return and support. The agency then has 180 days after that notice to file a claim; if it does not, the debtor or trustee may file a matching claim and the agency cannot later change it. Any such claim is decided under section 502 as if it arose just before the petition.