CCA Memo. 201003001 (Nov. 23, 2009)

(IRS lists factors affecting IRS's ability to collect after default of Chapter 11 reorganization plan; IRS notes that there are four post-BAPCPA aspects of bankruptcy cases that could limit the IRS's ability to collect from the debtor after default on the Chapter 11 plan - (1) discharge injunction (confirmation of the plan does not discharge debts until court grants discharge upon completion of all plan payments, but debtor may seek hardship discharge); (2) binding effect of the plan (upon default, plan generally not binding - IRS directed to try to have default provisions included in Chapter 11 plans); (3) stay of acts to collect pre-petition debts (stay terminated upon discharge or closing of the case); (4) stay of acts against estate property (does not end until property no longer in estate - IRS position is that, in the absence of binding precedent or contrary language included in the plan or confirmation order, bankruptcy estate after confirmation is limited to portion of debtor's income or other earnings necessary to fund the plan - if plan provides that all of debtor's property remains property of the estate, to be protected by the stay, IRS's only recourse may be to file a motion for relief from stay, or motion to convert or dismiss; memo notes that if IRS not bound by plan, the discharge or the stay, IRS could proceed with collection remedies against debtor to collect pre-petition debts).