§ 132.6     Priority Claims, Including Requests for Payment of Administrative Expenses
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 132.6, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

The rules for timely filing priority claims are most like the rules for unsecured claims1 with the usual exception for governmental units2 and two wild cards: administrative expenses that are often treated as priority claims in Chapter 13 cases; and debts for domestic support obligations that are also secured claims in cases filed prior to October 17, 2005. As discussed below in this section, as a result of amendments in 2005, domestic support obligations must now be unsecured claims to be entitled to priority under § 507(a)(1) as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).3 Prior to the 2005 amendments, alimony, maintenance and support claims could be secured claims and entitled to priority under former § 507(a)(7).4

[2]

The allowance of administrative expenses is a process separate from the filing and allowance of ordinary proofs of claim. Although the statute identifies both administrative expenses and priority claims and there is no mention of administrative expenses in § 1322,5 that section requires priority claims to be paid in full to achieve confirmation,6 and administrative expenses are almost always treated the same as priority claims in Chapter 13 plans and by the courts. Priority claims described in § 507(a) are entitled to full payment in a Chapter 13 case unless the holder agrees to a different treatment.7

[3]

In Chapter 13 cases filed before October 22, 1994, there were eight kinds of priority claims and expenses described in § 507(a),8 and in Chapter 13 cases filed before October 22, 1994, proof of a priority claim had to be filed within the 90-day period in (former) Bankruptcy Rule 3002(c). In cases filed prior to October 22, 1994, § 503(a) provided, “An entity may file a request for payment, of an administrative expense.”9 In a Chapter 13 case filed prior to October 22, 1994, a request for payment of an administrative expense was not subject to the 90-day timeliness definition in (former) Bankruptcy Rule 3002(c). In such cases, neither the Bankruptcy Code nor the Rules provided any particular deadline by which the holder of an administrative expense must file a request for payment except in the event of conversion to Chapter 7.10

[4]

In bankruptcy cases filed after on or after October 17, 2005, there are 10 kinds of claims and expenses entitled to priority under § 507(a).11 The 1994 Act created a new class of priority claims for alimony, maintenance or support described in § 507(a)(7).12 Between October 22, 1994, and October 17, 2005, § 507(a)(7) simply referred to “allowed claims,” meaning that alimony, maintenance or support debts could be secured claims and still entitled to priority.13 In 2005, BAPCPA created a “domestic support obligation,” which includes alimony, maintenance and support,14 and moved it to the first priority in § 507(a)(1).15 But on and after October 17, 2005, a domestic support obligation entitled to priority under § 507(a)(1) must be “an allowed unsecured claim.16

[5]

Administrative expenses can still be secured under § 507(a)(2), notwithstanding the 2005 Act. A secured priority claim in a Chapter 13 case might be subject to the time-of-filing rules for secured claims.17

[6]

Eight of the 10 kinds of priority claims described in § 507(a) must be unsecured claims. With two exceptions discussed below, proof of an unsecured priority claim must be filed within the 90-day period provided in Bankruptcy Rule 3002(c). Official Bankruptcy Form 10, seems to work well enough for priority claims in cases filed after October 22, 1994.18

[7]

An exception to the 90-day filing requirement in cases filed after October 22, 1994, is a request for payment of administrative expenses. The Bankruptcy Reform Act of 1994 changed the provision for the filing and allowance of administrative expenses in § 503(a) to read: “An entity may timely file a request for payment of an administrative expense, or may tardily file such request if permitted by the court for cause.”19 In Chapter 13 cases filed after October 22, 1994, an entity with an administrative expense “may timely file” a request for payment under § 503(a) or the court may permit the tardy filing of such a request “for cause.” There was no analogous timeliness or tardiness provision with respect to administrative expenses in Chapter 13 cases filed before October 22, 1994.

[8]

Unfortunately, the 1994 addition of “may timely file” to § 503(a) is not coupled with any statutory definition of “timely.” The timely filing requirement could be interpreted to require greater diligence in the filing of requests for payment of administrative expenses in cases filed after October 22, 1994. So far, the bankruptcy rules define “timely” for administrative expense requests only at conversion to Chapter 7.20 It is not obvious whether bankruptcy courts may look to Bankruptcy Rule 3002(c) for the definition of timely in § 503(a) for other purposes. The escape valve—that a request for payment of an administrative expense can be tardily filed “if permitted by the court for cause”—provides some latitude in the timing of requests for payment of administrative expenses.

[9]

The 90-day filing requirement for unsecured priority claims also does not apply to governmental units in cases filed after October 22, 1994. Detailed elsewhere,21 11 U.S.C. § 502(b)(9)—as amended in 1994 and again in 2005—provides that the claim of a governmental unit

shall be timely filed if it is filed before 180 days after the date of the order for relief or such later time as the Federal Rules of Bankruptcy Procedure may provide, and except that in a case under chapter 13, a claim of a governmental unit for a tax with respect to a return filed under section 1308 shall be timely if the claim is filed on or before the date that is 60 days after the date on which such return was filed as required.22

Governmental units often hold priority claims because § 507(a)(8)23 grants priority to unsecured claims of governmental units for taxes. In Chapter 13 cases filed after October 22, 1994, a governmental unit can timely file proof of a priority claim before 180 days after the date of the order for relief or within such later time as the Federal Rules of Bankruptcy Procedure may provide.24 In cases filed on or after October 17, 2005, governmental units have an additional 60 days in which to file timely proof of a prepetition priority tax claim—counted from the filing of a tax return required by § 1308.25 Section 1308 applies to “tax returns for all taxable periods ending during the 4-year period ending on the date of the filing of the petition”—necessarily including most prepetition taxes eligible for priority.26

[10]

Consistent with the change to the Code in 2005, Bankruptcy Rule 3002(c)(1) now provides that a proof of claim by a governmental unit, “other than for a claim resulting from a tax return filed under § 1308, is timely if it is filed” within 180 days after the petition. The revised Rule then grants a governmental unit an additional 60 days from the filing of a tax return required by § 1308. “For cause,” the new rule permits the bankruptcy court to expand either time “upon motion of the governmental unit made before expiration of the period for filing a timely proof of claim.”27

[11]

Prior to the 2005 amendments, the Code created some confusion about the timely filing of an administrative expense request by a governmental unit. As mentioned above, § 503(a) provides that an entity with an administrative expense “may timely file a request for payment” or “may tardily file such request if permitted by the court for cause.”28 11 U.S.C. § 502(b)(9), as amended by the 1994 Act, provided that any claim of a governmental unit is timely filed “before 180 days after the date of the order for relief or such later time as the Federal Rules of Bankruptcy Procedure may provide.”29 Under the 1994 Code, a governmental unit with an administrative expense might be subject to both sections because many Chapter 13 plans and reported decisions treated an administrative expense allowed under § 503(b) as a first priority claim under § 507(a)(1). The listing of administrative expenses as the first priority in § 507(a)(1) lumped expenses and claims together in the minds of practitioners and judges.

[12]

If courts looked to § 502(b)(9) for the definition of timely in § 503(a), a governmental unit in a Chapter 13 case filed after October 22, 1994, and before the 2005 amendments, would be compelled to file a request for payment of an administrative expense within 180 days after the petition, or prove cause for a tardy filing. This was an odd outcome and not practical, because administrative expenses can arise at any time during the three- to five-year life of the typical Chapter 13 case. Bankruptcy Rule 1019(6) defines “timely” at conversion to Chapter 7 for a governmental unit with an administrative expense.30 Keeping administrative expenses separate from priority claims would avoid this outcome because § 502(b)(9) applies only to claims of governmental units. That the administrative expense arose after the 180-day period in § 502(b)(9) might be cause for a tardy request under § 503(a).

[13]

Section 503(b) was amended in 2005 to include in administrative expenses any tax “incurred by the estate, whether secured or unsecured, including property taxes for which liablity is in rem, in personam, or both.”31 Section 503(b)(1)(D) was added, providing “notwithstanding the requirements of subsection (a), a governmental unit shall not be required to file a request for the payment of an expense described in subparagraphs (B) or (C), as a condition of its being an allowed administrative expense.”32 New § 503(b)(1)(D) seems to absolve a governmental unit of any mandate to file an administrative expense request for taxes, but this new provision raises a host of new questions about how an administrative tax will be paid in a plan if the governmental unit never requests payment.33

[14]

Such questions and the patchwork of filing requirements for ordinary priority claims, for priority claims of governmental units and for administrative expenses have particular significance for tax claims in Chapter 13 cases. In addition to qualifying as priority claims or administrative expenses, taxes that become payable to a governmental unit while the case is pending may also fit the definition of postpetition claims under § 1305(a)(1).34 Neither the Code nor the Rules specify a deadline, procedure or form for the filing of postpetition claims.35 However, § 1305 does contemplate the filing of a proof of claim by the holder of a postpetition claim.36

[15]

In Chapter 13 cases filed before October 22, 1994, a prepetition tax claim described in (former) § 507(a)(7)37 was an (ordinary) priority claim that was filed using Official Bankruptcy Form 10 and must have been filed within the 90 days fixed by (former) Bankruptcy Rule 3002(c). A tax incurred by the estate described in (former) § 503(b)(1)(B)38 was an administrative expense, a request for payment of which was filed under (former) § 503(a),39 without obvious limitation as to time or form. A tax that became payable to a governmental unit while the Chapter 13 case was pending might have been a postpetition claim under § 1305(a)(1) for which a proof of claim may be filed. Neither the Code nor the Rules specified a deadline or form for the filing of a postpetition claim for taxes.

[16]

In Chapter 13 cases filed after October 22, 1994, a prepetition tax claim described in § 507(a)(8)40 is a priority claim that is filed using Official Bankruptcy Form 10. Prepetition tax claims described in § 507(a)(8) typically are held by governmental units and are timely filed “before 180 days after the date of the order for relief or such later time as the Federal Rules of Bankruptcy Procedure may provide.”41 In cases filed on or after October 17, 2005, a governmental unit has an additional 60 days to file a claim for prepetition taxes measured from the filing of a prepetition tax return required by § 1308.42

[17]

A tax incurred by the estate and described in § 503(b)(1)(B) is an administrative expense, a request for payment of which may be timely filed or tardily filed if permitted by the court for cause.43 Timely filing of a request for payment of an administrative expense for taxes due a governmental unit may be limited by the definition of timely filing for proofs of claim in § 502(b)(9), except that the 2005 amendment to § 503(b)(1)(D) relieves the governmental unit of any obligation to file a request for an administrative expense.44 At conversion to Chapter 7, Bankruptcy Rule 1019(6) continues to define “timely” for the filing of an administrative expense for taxes.45

[18]

A tax that becomes payable to a governmental unit while the Chapter 13 case is pending may be a postpetition claim under § 1305 for which a proof of claim may be filed. It was not obvious, prior to the 2005 amendments, whether or how courts would apply the 180-day definition of timely in § 502(b)(9) to the filing of postpetition claims by governmental units in cases filed after October 22, 1994.46 Neither the Code nor the Rules otherwise specify a deadline or form for the filing of such claims, and that vacuum continues after BAPCPA.47

[19]

In bankruptcy cases filed before October 22, 1994, many reported decisions recognized that (prepetition) tax claims entitled to priority under (former) § 507(a)(7) and to full payment under § 1322(a)(2)48 must be filed within the time provided in (former) Bankruptcy Rule 3002(c).49 In cases filed before October 22, 1994, if the IRS did not file proof of its priority tax claim within 90 days of the first date set for the meeting of creditors, many courts held that the claim was not allowed, and if the debtor completed payments under the plan, the claim was discharged without payment.50 There is every reason to believe that these strict rules continue to apply to the 180-day filing deadline under § 502(b)(9) in cases filed after October 22, 1994.51 If the governmental unit fails to file a claim within 180 days of the petition—or as that deadline might be extended for a claim related to a § 1308 tax return—the strict time barrier to allowance should continue to apply in cases filed after October 17, 2005.52

[20]

Bankruptcy Rule 3002(c)(1) (as amended effective December 1, 1996, and again December 1, 2008) permits the court to grant governmental claim holders an extension of the 180-day and 60-day time limits “for cause” if the motion for an extension of time is filed “before the expiration of such period.”53 In Chapter 13 cases filed prior to October 22, 1994, it was held that a taxing authority that failed to timely move for an extension of the filing deadline could not do so after the 90 days in former Bankruptcy Rule 3002(c); the claim was not entitled to distributions and was discharged upon completion of payments to other creditors.54 Governmental units holding priority tax claims should treat the 180-day, and additional 60-day, period in Bankruptcy Rule 3002(c)(1) as an absolute deadline by which a claim or a request for extension must be filed.

[21]

When a Chapter 13 case converts to Chapter 7, there are special timing rules for the filing of a request for payment of an administrative expense.55 As amended in 1999, Bankruptcy Rule 1019(6) provides:

A request for payment of an administrative expense incurred before conversion of the case is timely filed under § 503(a) of the Code if it is filed before conversion or a time fixed by the court. If the request is filed by a governmental unit, it is timely if it is filed before conversion or within the later of a time fixed by the court or 180 days after the date of the conversion.56
[22]

Rule 1019(6) partially answers the question, what does “timely” mean in § 503(a)? At conversion to Chapter 7, a request for administrative expenses filed during the Chapter 13 case is timely. But Rule 1019(6) contains something of a trap for nongovernmental entities with administrative expenses that arose but weren’t requested before conversion. Not every court by local rule or otherwise fixes a time for filing requests for payment of administrative expenses at conversion from Chapter 13 to Chapter 7. Without such a time fixed by local rule or order, Rule 1019(6) contemplates that a request for payment of a nongovernmental administrative expense incurred before conversion must be filed before conversion. The debtor’s attorney is the party most interested in this problem because lawyers that represent Chapter 13 debtors are often not completely paid when the case converts to Chapter 7. Filing the notice of conversion and later filing a request for unpaid attorney fees probably fails the timeliness requirement in Bankruptcy Rule 1019(6) absent specific relief from the bankruptcy court. A tardy request can be allowed for “cause” under § 503(a), and a time fixed under Rule 1019(6) can be enlarged even after it expires under Rule 9006(b) by showing “excusable neglect,” but either procedure will require a motion and a hearing. The Bankruptcy Court for the District of Kansas exercised its discretion to allow a tardy request from an attorney for administrative expenses at conversion from Chapter 13 to Chapter 7 when it appeared that the attorney was confused by changes in local procedures under Bankruptcy Rule 1019(6).57

[23]

A governmental unit with an administrative expense incurred before conversion fares better under Bankruptcy Rule 1019(6). The Rule allows a governmental unit to timely file a request for an administrative expense until 180 days after conversion when no request was filed before conversion and no later time is fixed by the court. Also, an administrative expense request filed by a governmental unit during the Chapter 13 case but after the 180 days in § 502(b)(9) is validated by Rule 1019(6) at conversion. Governmental units are thus guaranteed at least 180 days after conversion within which to timely file a request for payment of an administrative expense incurred during the Chapter 13 case. It is not obvious why the rules drafters did not extend some of this largesse to nongovernmental entities. At this writing Bankruptcy Rule 1019(6) has not been amended to reflect the 2005 amendment to § 503(b)(1)(D), which seems to absolve governmental units of the need to file a request for payment of an administrative expense for taxes described in § 503(b)(1)(B) or (C).


 

1  See § 277.1 [ Unsecured Claims ] § 132.4  Unsecured Claims.

 

2  See § 276.1 [ Governmental Units ] § 132.3  Governmental Units.

 

3  Pub. L. No. 109-8, 119 Stat. 23 (2005). See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

4  See §§ 300.1 [ Secured Priority Claims? ] § 136.18  Secured Priority Claims before BAPCPA, 301.1 [ Alimony, Maintenance and Support in Cases Filed after October 22, 1994 ] § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994 and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

5  See § 99.1 [ What Claims Are Priority Claims? ] § 73.2  What Claims Are Priority Claims?.

 

6  See §§ 98.1 [ Plan Must Provide Full Payment ] § 73.1  Plan Must Provide Full Payment and 291.1 [ Treatment of Priority Claims ] § 136.1  Treatment of Priority Claims.

 

7  11 U.S.C. § 1322(a)(2). See § 73.1  Plan Must Provide Full Payment and § 136.1  Treatment of Priority Claims.

 

8  11 U.S.C. § 507(a) (prior to 1994 amendments).

 

9  11 U.S.C. § 503(a) (prior to 1994 amendments).

 

10  See Fed. R. Bankr. P. 1019(6), discussed in § 314.1 [ On Postpetition Claims ] § 142.5  On Postpetition Claims.

 

11  See 11 U.S.C. § 507(a), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 304, 108 Stat. 4106 (1994), and as further amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005), discussed in § 73.2  What Claims Are Priority Claims?, § 73.3  Priority Claims Added or Changed by BAPCPA and beginning at § 136.2  Taxes before BAPCPA.

 

12  See § 136.18  Secured Priority Claims before BAPCPA§ 136.19  Secured Priority Claims after BAPCPA, § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994.

 

13  See § 300.1 [ Secured Priority Claims? ] § 136.18  Secured Priority Claims before BAPCPA.

 

14  See 11 U.S.C. § 101(14A).

 

15  See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

16  11 U.S.C. § 507(a)(1), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See § 73.3  Priority Claims Added or Changed by BAPCPA§ 73.7  Secured Priority Claims?, § 136.18  Secured Priority Claims before BAPCPA and § 136.21  Domestic Support Obligations after BAPCPA.

 

17  See §§ 280.1 [ Secured Claim Holders ] § 132.7  Secured Claim Holders, 300.1 [ Secured Priority Claims? ] § 136.18  Secured Priority Claims before BAPCPA and 301.1 [ Alimony, Maintenance and Support in Cases Filed after October 22, 1994 ] § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994.

 

18  The sources of priority and the statutory references in Official Bankruptcy Form 10 were corrected to reflect the amendment and renumbering of § 507(a) by the Bankruptcy Reform Act of 1994 and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The most recent version of Form 10 was effective December 2008. See §§ 272.1 [ Official Bankruptcy Form 10 and Variations ] § 131.1  Official Bankruptcy Form 410 and Variations and 507.1 [ New Official Form 10 ] § 131.2  Official Form 410 after BAPCPA.

 

19  11 U.S.C. § 503(a), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 213, 108 Stat. 4106 (1994).

 

20  See Fed R. Bankr. P. 1019(6), discussed below in this section, and see § 314.1 [ On Postpetition Claims ] § 142.5  On Postpetition Claims.

 

21  See §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units, 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA and 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

22  11 U.S.C. § 502(b)(9), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 213, 108 Stat. 4106 (1994), and as further amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See §§ 275.2 [ In General: Filing is Required for Allowance ] § 132.2  In General: Filing is Required for Allowance, 276.1 [ Governmental Units ] § 132.3  Governmental Units, 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA and 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

23  11 U.S.C. § 507(a)(8), formerly 11 U.S.C. § 507(a)(7), as redesignated by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 304, 108 Stat. 4106 (1994).

 

24  As amended effective December 1, 1996, Bankruptcy Rule 3002(c)(1) permitted the court to grant a governmental unit an extension of time to file a proof of claim if the extension is requested by motion filed before expiration of the 180-day period for filing a proof of claim. Fed. R. Bankr. P. 3002(c)(1) (as amended effective Dec. 1, 1996). Rule 3002(c)(1) was further amended, effective December 1, 2008, to reflect the 2005 change to § 502(b)(9), giving a governmental unit 60 additional days, measured from the date the debtor files a tax return required by § 1308. The 2008 amendment to the Rule also requires any motion for extension to be “made before expiration of the period for filing a timely proof of claim.” See §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units and 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA.

 

25  See 11 U.S.C. § 502(b)(9), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See also Fed. R. Bankr. P. 3002(c)(1) (as amended effective Dec. 1, 2008) and §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units and 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA.

 

26  See 11 U.S.C. § 1308, as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005), discussed beginning at § 42.4  Tax Return Duties—In General§ 133.5  Tax Claim Exception after BAPCPA and § 136.3  Taxes after BAPCPA.

 

27  Fed. R. Bankr. P. 3002(c)(1) (effective December 2008).

 

28  11 U.S.C. § 503(a).

 

29  11 U.S.C. § 502(b)(9), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 213, 108 Stat. 4106 (1994).

 

30  See below in this section, and see § 314.1 [ On Postpetition Claims ] § 142.5  On Postpetition Claims.

 

31  11 U.S.C. § 503(b)(1)(B)(i), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005), discussed in § 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

32  11 U.S.C. § 503(b)(1)(D), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005), discussed in § 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

33  See § 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

34  See §§ 292.1 [ Taxes ] § 136.2  Taxes before BAPCPA, 302.1 [ Postpetition Claims ] § 137.1  Postpetition Claims before BAPCPA and 524.1 [ Postpetition Claims ] § 137.2  Postpetition Claims after BAPCPA.

 

35  See §§ 281.1 [ Postpetition Claims ] § 132.9  Postpetition Claims, 302.1 [ Postpetition Claims ] § 137.1  Postpetition Claims before BAPCPA and 524.1 [ Postpetition Claims ] § 137.2  Postpetition Claims after BAPCPA.

 

36  11 U.S.C. § 1305(a) recites, “A proof of claim may be filed by any entity that holds a claim.”

 

37  11 U.S.C. § 507(a)(7) (prior to 1994 amendments).

 

38  11 U.S.C. § 503(b)(1)(B) (prior to 1994 amendments).

 

39  11 U.S.C. § 503(a) (prior to 1994 amendments).

 

40  11 U.S.C. § 507(a)(8), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 304, 108 Stat. 4106 (1994).

 

41  11 U.S.C. § 502(b)(9), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 213, 108 Stat. 4106 (1994).

 

42  11 U.S.C. § 502(b)(9), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005), discussed in §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units, 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA and 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

43  11 U.S.C. § 503(a), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 213, 108 Stat. 4106 (1994).

 

44  11 U.S.C. § 503(b)(1)(D), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See also §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units and 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

45  See below in this section, and see § 314.1 [ On Postpetition Claims ] § 142.5  On Postpetition Claims.

 

46  See § 281.1 [ Postpetition Claims ] § 132.9  Postpetition Claims.

 

47  See § 524.1 [ Postpetition Claims ] § 137.2  Postpetition Claims after BAPCPA.

 

48  See §§ 98.1 [ Plan Must Provide Full Payment ] § 73.1  Plan Must Provide Full Payment and 291.1 [ Treatment of Priority Claims ] § 136.1  Treatment of Priority Claims.

 

49  See § 292.1 [ Taxes ] § 136.2  Taxes before BAPCPA. See, e.g., Jones v. United States (In re Jones), 134 B.R. 274 (N.D. Ill. 1991); In re Tomlan, 102 B.R. 790 (E.D. Wash. 1989); In re Turner, 157 B.R. 904 (Bankr. N.D. Ala. 1993); In re Zimmerman, 156 B.R. 192 (Bankr. W.D. Mich. 1993); Border v. IRS (In re Border), 116 B.R. 588 (Bankr. S.D. Ohio 1990); Workman v. United States, 108 B.R. 826 (Bankr. M.D. Ga. 1989); Daniel v. United States, 107 B.R. 798 (Bankr. N.D. Ga. 1989); In re Miller, 90 B.R. 317 (Bankr. E.D. Tenn. 1988), aff’d, United States v. Miller (In re Miller), 118 B.R. 76 (E.D. Tenn. 1989); In re Burrell, 85 B.R. 799 (Bankr. N.D. Ill. 1988); In re Mikrut, 79 B.R. 404 (Bankr. W.D. Wis. 1987); In re Ryan, 78 B.R. 175 (Bankr. E.D. Tenn. 1987); In re Rothman, 76 B.R. 38 (Bankr. E.D.N.Y. 1987); Work v. County of Douglas, 58 B.R. 868 (Bankr. D. Or. 1986).

 

50  See, e.g., In re Chavis, 47 F.3d 818 (6th Cir. 1995); United States v. Lee, 184 B.R. 257 (W.D. Va. 1995); In re Tomlan, 102 B.R. 790 (E.D. Wash. 1989); Richards v. United States, 50 B.R. 339 (E.D. Tenn. 1985); In re Turner, 157 B.R. 904 (Bankr. N.D. Ala. 1993); In re Zimmerman, 156 B.R. 192 (Bankr. W.D. Mich. 1993); In re Sorge, 149 B.R. 197 (Bankr. W.D. Okla. 1993); Border v. IRS (In re Border), 116 B.R. 588 (Bankr. S.D. Ohio 1990); Workman v. United States, 108 B.R. 826 (Bankr. M.D. Ga. 1989); Daniel v. United States (In re Daniel), 107 B.R. 798 (Bankr. N.D. Ga. 1989); In re Burrell, 85 B.R. 799 (Bankr. N.D. Ill. 1988); In re Ryan, 78 B.R. 175 (Bankr. E.D. Tenn. 1987); In re Rothman, 76 B.R. 38 (Bankr. E.D.N.Y. 1987); In re Goodwin, 58 B.R. 75 (Bankr. D. Me. 1986). But see United States v. Waindel (In re Waindel), 65 F.3d 1307 (5th Cir. 1995) (Untimely filed claim for taxes, penalties and interest is allowable in a Chapter 13 case, is entitled to priority under § 507, but is not entitled to “first-tier distribution status” under § 726(a)(1).); In re Friauf, 172 B.R. 273, 276 (Bankr. D. Minn. 1994) (Late-filed claim of IRS is allowable. “[T]hat the IRS’ claim was tardily filed is irrelevant for purposes of maintaining its priority.”). See also § 344.1 [ Broadest Discharge Available ] § 157.1  Broadest Discharge Available. There was controversy prior to the 1994 Act whether disallowance was the proper sanction for the failure of an unsecured claim holder to file a proof of claim within the 90 days provided in Bankruptcy Rule 3002(c). See § 289.1 [ Untimely Filed Claims in Cases Filed before October 22, 1994: The Hausladen Phenomenon ] § 135.6  Untimely Filed Claims in Cases Filed before October 22, 1994: The Hausladen Phenomenon.

 

51  See § 290.1 [ Untimely Filed Claims in Cases Filed after October 22, 1994 ] § 135.7  Untimely Filed Claims in Cases Filed after October 22, 1994. See, e.g., Mini v. California Bd. of Equalization (In re Mini), Nos. 01-43201 TG, 06-4219 AT, 2007 WL 2223820 (Bankr. N.D. Cal. July 30, 2007) (unpublished) (Tchaikovsky) (State Board of Equalization failed to timely file proof of claim for prepetition responsible person taxes; plan provided full payment of priority claims, and responsible person liability was discharged.).

 

52  11 U.S.C. § 502(b)(9), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See §§ 276.1 [ Governmental Units ] § 132.3  Governmental Units, 508.1 [ New Timing Issues ] § 133.5  Tax Claim Exception after BAPCPA and 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA.

 

53  Fed. R. Bankr. P. 3002(c)(1).

 

54  In re Rothman, 76 B.R. 38 (Bankr. E.D.N.Y. 1987) (Bankruptcy Rule 3002(c)(1) permits prepetition tax claimant to avoid the strict time requirements for the filing of proof of claim “for cause shown.” When taxing authority fails to timely file a proof of claim or to seek amendment consistent with Bankruptcy Rule 3002(c)(1), prepetition claim is discharged.).

 

55  See § 314.1 [ On Postpetition Claims ] § 142.5  On Postpetition Claims for further discussion of administrative expenses and conversion from Chapter 13 to Chapter 7.

 

56  Fed. R. Bankr. P. 1019(6).

 

57  See In re Simmons, 286 B.R. 426, 428–30 (Bankr. D. Kan. 2002) (At conversion from Chapter 13 to Chapter 7, Bankruptcy Rule 1019(6) requires debtors’ attorney to request administrative expense for fees before the order of conversion; when attorney was misled by changes in local procedures, bankruptcy court exercised its discretion to allow application filed after conversion. “Under [Bankruptcy Rule 1019(6)], a request for payment of a pre-conversion administrative expense is timely only if it is filed before conversion, unless the court fixes another time. . . . Rule 1019(6) grants the court discretion to change the rule by fixing a time by which the application will be considered timely. The court feels it only fair to do so under these circumstances.”).