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US S1237

US S1237
Family Farmer Bankruptcy Clarification Act of 2017


summary

Introduced
05/25/2017
In Committee
05/25/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Family Farmer Bankruptcy Clarification Act of 2017 This bill amends the federal bankruptcy code to include an unsecured claim by a governmental unit (e.g., a tax claim by the Internal Revenue Service) resulting from the sale, transfer, exchange, or disposition of farming property in chapter 12 bankruptcy (family farmer or fisherman reorganization) proceedings. Such a claim that arises before a debtor's discharge, regardless of whether the claim is pre-petition or post-petition, must be treated as a pre-petition claim, is not entitled to priority status, must be provided for under the bankruptcy plan, and is dischargeable.

AI Summary

This bill amends the federal bankruptcy code to clarify the treatment of unsecured claims by governmental units (such as tax claims) that arise from the sale or disposition of farming property in Chapter 12 bankruptcy proceedings (for family farmers or fishermen). The bill specifies that such claims must be treated as pre-petition, unsecured claims that are not entitled to priority status, must be provided for under the bankruptcy plan, and are dischargeable. The bill also includes technical and conforming amendments to the bankruptcy code to align with these new provisions. The amendments apply to both pending bankruptcy cases where a discharge order has not yet been entered, as well as new cases filed on or after the date of enactment.

Committee Categories

Justice

Sponsors (3)

Last Action

Read twice and referred to the Committee on the Judiciary. (Sponsor introductory remarks on measure: CR S3216; text of measure as introduced: CR S3215-3216) (on 05/25/2017)

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