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Chapter 13 Debtors Should Include Proposal to Surrender Tangible Property to Pay Secured Tax Claim According to Latest ABI Poll

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Contact: John Hartgen

            

703-739-0800

            

jhartgen@abiworld.org



CHAPTER 13 DEBTORS SHOULD INCLUDE PROPOSAL TO SURRENDER TANGIBLE
PROPERTY TO PAY SECURED TAX CLAIM, ACCORDING TO LATEST
w:st='on'>ABI POLL

September 26, 2007,
Alexandria, Va. —A majority of respondents (62 percent)

to ABI’s latest online
poll agreed that debtors should include a proposal to surrender tangible

property to satisfy a secured tax claim and pay the remaining secured
value through their chapter 13 reorganization plan. Fourty-four percent
of respondents “strongly agreed” and 18 percent
“somewhat agreed” that debtors should surrender tangible
property to satisfy a secured tax claim and pay the remaining secured
value through their chapter 13 repayment plan.

Twenty-four percent of
respondents, however, did not agree that debtors should include a
proposal to surrender tangible property to pay a secured tax claim and
the remaining secured value through their chapter 13 plan.
 Seventeen percent “strongly disagreed” and 7 percent
“somewhat disagreed” that debtors should include a proposal
to surrender tangible property to pay the remaining value of a secured
tax claim and the remaining secured value through their chapter 13 plan.

Twelve percent of the respondents did not know or had no opinion on the
issue.

The U.S. Court of Appeals for
the Fourth Circuit affirmed a district court’s ruling in IRS v.

White, (4th Cir. No. 06-1462, 4/23/07), in which the chapter 13
debtors had not properly included a proposal to surrender tangible
property and pay the remaining value of a secured tax claim in their
reorganization plan. The court found that while the debtors had proposed

to “surrender” tangible property, they were not planning to
relinquish the property in a timely or proper manner to satisfy the
claim. 


size='3'>ABI members and members of the public
were welcome to submit their response to the statement: Debtors
properly included in their chapter 13 reorganization a proposal to
satisfy a secured tax claim by surrendering tangible property and paying

the remaining secured value through the plan. (IRS v. White (In re
White)), 4th Cir. No. 06-1462, 4/23/07).


size='3'>ABI’s weekly Quick Poll is posted

on ABI’s home page,
title='http://www.abiworld.org/'
href='http://www.abiworld.org/'>www.abiworld.org.
w:st='on'>ABI members and the public are invited to
respond to a question on a timely bankruptcy or insolvency issue. Visit

href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous ABI
Quick Polls.

###


size='3'>ABI is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on matters
related to insolvency. ABI
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI membership includes nearly 11,500
attorneys, accountants, bankers, judges, professors, lenders, turnaround

specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org.
For additional conference information, visit
title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.