§1232 Claim by a Governmental Unit Based on the Disposition of Property Used in a Farming Operation

Summary

Treats any unsecured government claim about money owed because farm property was sold, moved, traded, or otherwise disposed of as if the claim existed before the bankruptcy was filed. Those claims do not get priority under section 507. They must be included in the repayment plan and will be wiped out according to section 1228. For certain plan and discharge calculations (see sections 1225(a)(4), 1228(b)(2), and 1229(b)(1)), the claim is valued the same way it would be in a chapter 7 liquidation if it were an unsecured, nonpriority prepetition claim. For purposes of sections 523(a), 1228(a)(2), and 1228(c)(2), the claim is not treated as the kinds listed in subparagraph (A) or (B) of 523(a)(1). A government unit may file a proof of claim for one of these debts that arises after the case starts. If the debtor files a tax return after filing the bankruptcy and that return creates the claim, the debtor must notify the tax authority at the address and in the way required by section 505(b)(1). The notice must say a bankruptcy was filed, name the court, give the claim amount, and include the tax return and supporting papers. After that notice, the government has 180 days to file a claim. If it does not, the debtor or trustee can file a claim matching the notice, and the government cannot later change that claim. Any claim filed this way is decided under section 502 as if it had arisen just before the bankruptcy filing.