## United States Bankrup tcy Appellate P anel

FOR THE EI GHT H CIRCUI T

No. 1 2- 60 34

In re: Sha wn C C op el an d; *

Lau ren MK Co pe la nd

, *

*

Deb to rs

, *

*

Sh awn C Co pe la nd ; *

Lau ren MK Co pe la nd

, * App eal fro m th e

* Uni te d S ta te s

Deb to rs - App el la nt s, * Ban kr up tc y Co ur t fo r th e

* W es te rn Dis tri ct of M is so ur i

v. *

*

Ri ch ard V. Fin k, *

*

Trus te e - Ap pe ll ee. *

Su bm it te d: Octo be r 23 , 20 12

Fil ed : No ve m

be r 20 , 20 12

Befo re KRESSEL, Ch ie f Ju dg e, SCHERM ER an d NAIL, Ban kr up tc y Ju dg es

SCHERM ER, Ban kr up tc y Ju dg eTh e Deb to rs , S ha wn C Co pe la nd an d Lau ren MK Co pe la nd (th e “ Deb to rs ”)

,

ap pe al fro m th e or de r of th e ba nk ru pt cy co ur t co nf irming th ei r am en de d Ch ap te r 13 1

pl an

. W e ha ve juri sd ic ti on ov er th is ap pe al fro m th e fin al jud gm en t of th e ba nk ru pt cy

co ur t. Se e 28 U.S.C. § 1 58 (b ). For th e rea so ns set for th be lo w, we affi rm

.

IS SUE

The is su e in th is ap pe al is whe t h e r t h e ba nk ru pt cy co ur t erre d whe n it

co nf irmed th e Deb to rs ’ am en de d Ch ap te r 13 ba nk ru pt cy pl an (o ve r th e Deb to rs ’

ob jecti on ) th at di d no t pr ov id e fo r pa y m en t of un se cu red no n- pr io rit y ta x cl ai m s an d

ta x pr ep arat io n fees ah ead of ot he r no n- pr io rit y un se cu red cred it or s. Bec au se a pl an

pr op os ed by th e Deb to rs p r o v id in g fo r sp eci al tre at m en t of th e ta x cl ai m s wou ld

un fai rly di sc riminat e ag ai ns t ot he r un se cu red no n- pr io rit y cred it or s, we ho ld th at th e

ba nk ru pt cy

co ur t’s co nf

irmatio n o f th e Deb to rs ’ pl an was p ro pe r.

BACKGRO UND

On Ap ril 22 , 20 11 , th e Deb to rs fil ed a pe ti ti on fo r rel ie f un de r Ch ap te r 13 of

Tit le 11 of th e Uni te d St at es Co de (th e “ Ban kr up tc y Co de ”). Tax in g au th or it ie s ho ld

un se cu red no n- pr io rit y cl ai m s in th e Deb to rs ’ ba nk ru pt cy cas e. Bec au se of th e ag e 2

of th e ta x de bt an d th e ta rd y fil in g of ta x ret ur ns fo r pr e-p et it io n y ears , t he ta x de bt

is no n- pr io rit y

de bt an d a su bs ta nt ia l p or ti on of i t i s n on -d is ch arg eab le

.

T he Hon or ab le Je rry W

. Ven te rs

, Uni te d St at es Ban kr upt cy Judg e fo r the 1

We s t e r n Dis tri ct of Mi ss ou ri. The Hon or ab le Arth ur B. Fed erm an

, Ch ie f Uni te d

St at es Ban kr up tc y Ju dg e fo r th e W es te rn Dis tri ct of Mi ss ou ri an d an d th e Hon or ab le

Den ni s R. Dow, Uni te d St at es Ban kr up tc y Ju dg e fo r th e W es te rn Dis tri ct of Mi ss ou ri,

he ld he ari ng s and ov erru le d o bjec ti on s b y th e Deb to rs to co nf

irmatio n o f th ei r own

Ch ap te r 13 pl an

. The ru li ng s of Ju dg e Fed erm an an d Ju dg e Dow bo th le d to th e or de r

of co nf irmatio n e nt ered by Jud ge Vent ers

.

The Deb to rs st at e th at th e ta xi ng au th or it ie s al so fil ed se cu red an d 2

pr io rit y un se cu red pr oo fs of cl ai m s in th e Deb to rs ’ cas e. Onl y th e u n s ecu red no npr io rit y cla im s ar e rel ev an t t o o ur di sc us si on

.

-2-The Deb to rs fil ed a pl an th at st at ed th at “ [t]he ge ne ral un se cu red cl ai m s of th e

Uni te d St at es fo r th e In te rn al Rev en ue Tax

, th e Mi ss ou ri Dep art m en t of Rev en ue

, an d

th e Kan sa s Dep art m en t of Rev en ue fo r in co m e ta xe s sh al l be tre at ed as a S pe ci al

Cl as s to be pa id 10 0 pe rcen t.” The pl an al so pr ov id ed th at “ Deb to rs ’ at to rn ey is to

be pa id fo r ta x ret ur n pr ep arat io n fro m pl an pa y m e n t s

. ” Th e ta x pr ep arat io n fees

res ul t fro m co un se l’s po st -p et it io n pr ep arat io n of ta x ret ur ns

. The ba nk ru pt cy co ur t

de ni ed co nf

irmatio n o f th e p la n. 3

In Feb ru ary 20 12

, th e Deb to rs am en de d th ei r pl an to rem ov e th e pr ov is io ns fo r

sp eci al cl as si fic at io n of un se cu red no n- pr io rit y ta x cl ai m s an d pl an pa y m en ts to th e

Deb to r’s at to rn ey fo r ta x pr ep arat io n fees

. The Deb to rs ob jecte d to co nf

irmatio n of

th ei r own pl an be cau se it di d no t pr ov id e fo r th e sp eci al tre at m en t of un se cu red no npr io rit y tax cred it or s an d ta x pr ep arat io n fees , a s pr ov id ed in th e Deb to rs ’ pr ev io us

pl an

.

At a he ari ng on th e Deb to rs ’ ob jecti on to co nf

irmatio n of th ei r Feb ru ary 20 12

pl an

, th e Deb to rs st at ed th at th ey wan te d to pa y th e un se cu red no n- pr io rit y ta x cl ai m s

in fu ll an d th ei r ta x pr ep arat io n fees “ fro m th e DIP.” Ci ti ng to Gro ves v. La Bar ge (In

re Gro ves )

, 39 F

. 3 d 2 12 (8 th Ci r. 19 94 ), Ri ch ard V. Fi nk

, Ch ap te r 13 tru st ee (th e

“Tr u st ee”)

, arg ue d th at it was un fai r di sc riminat io n un de r Ban kr up tc y Co de §1 32 2

fo r th e Deb to rs to pr ov id e sp eci al tre at m en t to th e ta x cred it or s si m pl y be cau se su ch

cred it or s’ cla im s wer e n on -d is ch arg eab le . Th e Deb to rs arg ue d th at it wou ld no t b e

un fai r to affo rd sp eci al tre at m en t to th e ta x cred it or s b e c a u s e t he ta x cred it or s are

req ui red to co nt in ue pe rfo rm i n g s e r v ic es fo r th e Deb to rs

. The ba nk ru pt cy co ur t

st at ed th at th e arg um en ts m ad e by th e Deb to rs “ do n’t pr ov id e a ba si s fo r tre at in g th e

ta xi ng au t h o r it ie s di ffer en t fro m un se cu red cred it or s” an d, ba si ng it s de ci si on on

The ba nk ru pt cy co ur t al so de ni ed co nf irmatio n of ot h e r fo rm s of th e 3

Deb to rs ’ pl an , b ut no gr ou nd for de ni al of c on fir m at io n, o th er t ha n t ho se di sc us se d

by us i n t hi s d eci si on , is rel ev an t t o t hi s ap pe al

.

-3-Gro ves

, st at ed th at “ th e pl an wou ld pr ov id e fo r un jus t di sc riminat io n if it al lo wed th e

un se cu red no n- pr io rit y ta x cl ai m s to be pa id ah ead of th e ot he r un se cu red cred it or s,

th at th e po t sh ou ld be av ai la bl e fo r al l th e un se cu red cred it or s.” The ba nk ru pt cy co ur t

ov erru le d th e Deb to rs ’ ob

jecti on to conf

ir m at ion

. No co nf

irmatio n or de r was en te red

.

In Apr il 20 12

, th e D e b t o rs am en de d th ei r pl an (th e “ Fi na l Pl an ”) to m ak e a

ch an ge to it th at is no t rel ev an t to th is ap pe al , b ut th ey ret ai ne d th e eq u al tre at m en t

of al l un se cu red cred it or s fro m th e Deb to rs ’ Feb ru ary 20 12 pl an in cl ud in g th e ta x

cred it or s an d ta x pr ep arat io n fees

. The Deb to rs ob jecte d to co nf

irmatio n of th e Fi na l

Pl an on th e sa me g r o u n d s th at th ey ha d pr ev io us ly ob jecte d to co nf

irmatio n of th e

Feb ru ary 20 12 pl an

. At a he ari ng

, th e ba nk ru pt cy co ur t st at ed th at th e is su es be fo re

it ha d al read y be en ru le d up on at th e pr ev io us he ari ng

, an d it ov erru le d th e Deb to rs ’

ob jecti on to co nf

irmatio n of th ei r Fi na l Pl an

. On May 10

, 20 12

, th e ba nk ru pt cy co ur t

en te red it s o rd er co nf

irming th e Fi na l Pl an

.

The Deb to rs ’ Ch ap te r 13 Pl an is a Dis po sa bl e In co m e Po t

- 60 m on th pl an

. The

Tr us te e es ti m at ed th at

, ba se d on cl ai m s th at ha d be en fil ed

, th e Fi na l Pl an w o u l d

pr ov id e fo r a di st rib ut io n of ap pr ox im at el y 78 % to al l un se c ur ed no n- pr io rit y

cred it or s. The Tru st ee fu rth er s ub m it te d t ha t, i f th e Deb to rs were p erm it te d t o p ay

4

th e ta x cl ai m s ah ead of ot he r un se cu red no n- pr io rit y cred it or s, th e ta x cred it or s wou ld

Afte r th e de ad li ne fo r fil in g pr oo fs of cl ai m s in th e D e b t o r s ’ cas e, th e 4

Deb to rs se tt le d an ad ve rs ary pr oc eed in g “ st rip in g of f” a le nd er’s j uni or m or

tga ge li en

. The Agr eed Ju dg m en t in t h e a d v e r sa ry pr oc eed in g st at ed th at th e le nd er “ sh al l be

en ti tl ed to ” an al lo wed un se cu red no n- pr io rit y cl ai m

. The Agr eed Ju dg m en t w a s

si gn ed an d en te red on th e do ck et in Decem be r 20 11

, bu t th e le n d e r h ad no t fil ed a

pr oo f of cla im as o f th e d at e th is cas e was su bm it te d t o u s.

-4-rece iv e a di st rib ut io n of ap pr ox im at el y 97 %. The rem ai ni ng un se cu red no n- pr io rit y 5

cred it or s wo ul d re cei ve no th in g. 6

STANDARD OF REVIEW

W e rev ie w fin di ng s of fact fo r cl ear erro r an d c o n c l u s i o ns of la w de no vo

.

La ng e v. Mut ua l of

Omah a (I

n r e Neg us -S

on s, In c.) , 46 0 B .R. 75 4, 7 55 (B.A.P. 8t h

Ci r. 20 11 ) (ci ta ti on om it te d)

. The st an da rd of rev ie w on th e is su e of w he th er th e

Deb to rs ’ pr op os ed cl as si fic at io n di sc riminat ed un fai rly is no t cl ear. Se e Gro ves

, 39

F.3 d at 21 4 (“ [ Mic kel

so n v. Les e r (

I n re Les er

)

, 93 9 F.2 d 66 9,6 71 (8 th Ci r. 19 91 )]

tre at ed th e is su e as ‘sol el y on e of le ga l in te rp ret at io n,’

. . . [b ]ut i n H a ns on v. Fir

st

Ban k of So ut h Dak

ot a, N.A.

, 82 8 F.2 d 1 3 1 0

, 1 3 1 3 ( 8t h Ci r. 19 87 ), we no te d ‘the

br oa d di sc ret io n of b a nk ru pt cy co ur ts in m at te rs of cl as si fic at io n,’ an d rev ie wed a

cl as si fic at io n i ss ue un de r th e cl earl y erro ne ou s s ta nd ard

. . . .”). In so m e in st an ces

,

th e in qu iry is “ pr im ari ly on e of st at ut or y co ns tru ct io n, to be rev ie wed de no vo [, b]ut

ap pl ic at io n of th e ‘dis cri m in at e u n fai rly’ st an da rd in ot he r cas es m ay in vo lv e li tt le

m or e th at ex erci se of th e ba nk ru pt cy co u r t’s br oa d di sc ret io n.” Gro ves

, 39 F.3 d at

21 4. Reg ard le ss of whe th er we rev ie w th e ba nk ru pt cy co ur t’s de ci si on de no vo or fo r

an ab us e o f di sc ret io n, o ur co nc lu si on is th e sa m e.

The Trus te e st at ed th at th is pe rcen ta ge do es no t acco un t fo r pa y m en t of 5

ta x p rep arat io n fe es

.

It is am bi gu ou s as to whe th er th e Deb to rs ’ req ue st fo r pa y m en t of th ei r 6

ta x pr ep arat io n fees is a pr io rit y or a no n- pr io rit y cl ai m

. The Deb to rs ’ pr ev io us pl an

si m pl y st at es th at th e ta x pr ep arat io n fees “ wil l be pa id fro m pl an pa y m en ts ou t of th e

D I P [ d i s p o s ab le in co m e po t] po ol .” W e do no t ne ed to res ol ve th is am bi gu it y

be cau se th e ba nk ru pt cy co ur t co rrec tl y no te d th e un fai r di s c r i mina ti on in th e

un se cu red cla im

cla ss ifi cat io n.

-5-DISCUSS IO N

The Deb to rs ha d st an di ng to br in g th is ap pe al fro m an or de r co nf irming th ei r

Ch ap te r 13 Fi na l Pl an

. Se e Za hn v. Fin k (In re Za hn ), 52 6 F.3 d 11 40

, 11 41 (8 th Ci r.

20 08 )(d eb to r ha d s ta nd in g t o a pp eal fro m an ord er co nf

irming he r own pl an ).

A. 11 U.S.C. §1 32 2( b)(1 )

Sect io n 13 22 (b )(1 ) of Tit le 11 of th e Uni te d St at es C o d e ( t h e “ Ban kr up tc y

Co de ”) pe rm it s a Ch ap te r 13 pl an to “ de si gn at e a cl as s or cl as se s of un se cu red cl ai m s,

as pr ov id ed in se ct io n 11 22 of [th e Ban kr up tc y Co de ], bu t [it ] m ay no t di sc riminat e

un fai rly ag ai ns t an y cl as s so de si gn a t e d

. . . .” “ A Ch ap te r 13

. . . pl an of

reo rg an iz at io n m ay pl ace un se cu red cl ai m s in se pa rat e c l a s s es ‘as lo ng as th e

cl as si fic at io n 1) co m

pl ie s wit h se ct io n 11 22 of th e [Ban kr up tc y ] Co de an d 2) do es no t

res ul t in un fai r di sc riminat io n be twee n th e cl ai m s gr ou pe d se pa rat el y .’ ” Gro ves

, 39

F.3 d a t 2 14 (qu ot in g Les er , 93 9 F .2d at 6 71 )).

The Trus te e co nt en ds

, an d we ag ree, th at th e Deb to rs ’ pr op os ed cl as si fic at io n

of th e ta x cl ai m s wou ld un fai rly di sc riminat e ag ai ns t th e ot he r un se cu red cred it or s in

vi ol at io n of §1 32 2( b) (1 ). The Deb to rs be ar th e bu rd e n of pr ov in g th at th ei r Fi na l

Pl an do es no t u nf

ai rly dis cri m in at e ag ai ns t un se cu red cred it or s. Gro ves

, 39 F.3 d at

21 4.

B. Unfa ir dis cri m in at io n

W e ap pl y a fo ur -p art te st ad op te d i n t hi s C irc ui t fo r de te rm in in g whe th er th e

Deb to rs ’ se pa rat e cl as si fic at io n of th e ta x de bt res ul te d in un fai r di sc riminat io n,

ex am in in g:

-6-( 1) whe th er th e di sc riminat io n ha s a reas on ab le ba si s; (2 ) whe th er th e

de bt or can carr y ou t a p la n wi th ou t t he di sc riminat io n; (3 ) whe th er the

di sc riminat io n is pr op os ed in go od fai th ; an d (4 ) whe th er th e de gr ee of

di sc riminat io n is di rect ly rel at ed to th e ba si s o r rat io na le fo r th e

di sc riminat io n.

Les se r , 93 9 F .2d at 6 72 (ci ta ti on s o m it te d)

.

Alt ho ug h th e two cas es co nc ern di ffer en t types of no n- di sc ha rg eab le de bt

, th is

cas e is si m il ar in m an y res pe ct s to th e Eig ht h Ci rcu it ’s Gro ves cas e. 39 F.3 d 21 2. In

Gro ves

, th e co ur t di sa ll owe d th e de bt or ’s req ue st to pr ov id e di sc riminat or y tre at m en t

to no n- di sc ha rg eab le st ud en t lo an de bt

. The Gro ves co ur t ag reed wi t h th e

de te rm in at io n by th e lo wer co ur ts “ th at th e no nd is ch arg eab il it y of st ud en t lo a n

cl ai m s, by it se lf, do es no t jus ti fy su bs ta nt ia l di sc riminat io n ag ai ns t ot he r,

di sc ha rg eab le un se cu red cl ai m s in a Ch ap te r 13 pl an .” Uns at is fact or y to th e Gro ves

co ur t were arg um en ts by th e de bt or th at pu bl ic po li cy co nc ern s m ad e it ap pr op ria te

to se pa rat el y cl as si fy a n d pa y st ud en t lo an de bt in fu ll th ro ug h a Ch ap te r 13 pl an

.

The Gro ves st ud en t lo an cred it or s were to rece iv e 10 0% pa y m en t un de r th e de bt or ’s

pr op os ed pl an

, whi le ot he r un se cu red cred it or s wou ld rece iv e, at m os t, 40 % of th ei r

cl ai m s. Here, the Deb to rs ’ pl an wou ld pa y th e ta x clai m s 97 % an d o th er u ns ecu red

cl ai m s 0 %.

Acco r d i n g to th e Deb to rs

, th ei r reas on fo r th e pr op os ed di sc riminat io n is to

pr ev en t pu ni sh m en t of th e ta x cred it or s. The Deb to rs st at e th at “ [w]hil e [Deb to rs ] are

at fau lt fo r no t ti m el y fil in g th ei r ta x ret ur ns

, th e ta xi ng au t h or it ie s are no t.”

Fo cu si ng on th e ob li ga ti on of ta xi ng au th or it ie s to co nt in ue pe rfo rm in g th ei r se rv ic es

(in co nt ras t to ot he r cre di to rs who can di sc on ti nu e p ro vi di ng go od s o r se rv ic es to a

de bt or ), th e Deb to rs arg ue fo r “ th e pu bl ic po li cy of m ax im um ta x co ll ect io n as th e

ba si s fo r fav or ab le tre at m en t o f ge ne ral un se cu red tax cla im s.”

-7-The pu bl ic po li cy arg um en t of th e Deb to rs se em s to be a req ue st (li ke a req ue st

by th e de bt or in Gro ves ) t h a t we ex te nd to th e Deb to rs ’ pl an th e Eig ht h Ci rcu it ’s

rat io na le in Les er

. 93 9 F.2 d 66 9. Ci ti ng to th e lo wer co ur t’s pu bl ic po li cy co nc ern s

fo r fu ll pa y m en t of su pp or t of ch il dr en

, th e Les er co ur t affi rm ed th e co nf irmatio n of

a Ch ap te r 13 pl an th at ga ve sp eci al tre at m en t to cl ai m s fo r un se cu red no n- pr io rit y

no n- di sc ha rg eab le ch il d su pp or t. Id

. The in te res t in co ll ect in g ta xe s as ad va nc ed by

th e Deb to rs is s i mp l y n o t c om pa rab le to th e pu bl ic po li cy in fav or of en su rin g th at

ch il d su pp or t is pa id

. Se e Gro ves

, 29 F.3 d at 21 5 (d is al lo win g th e de bt or ’s r eq ue st

to li ke n pu bl ic po li cy in fav or of pa y in g ch il d su pp or t in fu ll th ro ug h pl an as al lo wed

in Les er wit h pa y m en t of st ud en t lo an de bt ). The Deb to rs pr ov id ed no th in g to

co nv in ce th e ba nk ru pt cy co ur t or us th at th e ta x cred it or s de se rv e sp eci al tre at m en t.

Reg ard le ss of th e Deb to rs ’ st at ed pu rp os e fo r th e di sc r i mi na ti on an d in li gh t

of th e fact th at we do no t acce pt th e Deb to rs ’ pu bl ic po li cy rat io na le

, it is ev id en t (as

th e ba nk ru pt cy co ur t im

pl ic it ly de te rm in ed ) th at th e reas on fo r th e Deb to rs ’ pr op os ed

sp eci al tre at m en t of th e ta x cl ai m s is be cau se of th e no n- di sc ha rg eab le na tu re of m os t

of su ch de bt

. St an di ng al on e, th e no n- di sc ha rg eab il it y of a de bt is no t a pr op er ba si s

fo r di sc riminat io n ag ai ns t ot he r un se cu red no n- pr io rit y cl ai m s. Gro ves

, 3 9 F.3 d at

21 6 (n on -d is ch arg eab il it y of st ud en t lo an de bt al on e is no t en ou gh to jus ti fy

di sc riminat io n a ga in st ot he r un se cu red cred it or s)

.

W e al so no te th at no ne of th e t a x c r e d i to rs ob jecte d to co nf

irmatio n of th e

Deb to rs ’ Fi na l Pl an

, a pl an th at th e Deb to rs cl ai m un fai rly pu ni sh es th os e sa m e

cred it or s. The Trus te e es ti m at ed th at th e ta x cred it or s (to ge th er wit h ot he r un se cu red

no n- pr io rit y cred it or s) wil l re cei ve pa y m en t o f 78 % of th ei r un se cu red no n- pr io rit y

c l a i ms un de r th e Fi na l Pl an

. And th e ta x cred it or s’ rig ht s are pr ot ect ed wit ho ut

s p e c i a l tre at m en t be cau se th es e cred it or s can pu rs ue pa y m en t of th e no ndi sc ha rg eab le de bt aft er th e co m pl et io n of th e Deb to r’s ba nk ru pt cy cas e. W e reject

an arg um en t by th e Deb to rs th at th e de la y in co ll ect in g th e no n- di sc ha rg eab le ta x de bt

sh ou ld ch an ge th e ou tc om e. Se e G r o v e s

, 3 9 F

. 3d 21 2 (d el ay in co ll ect io n of no n-

-8-di sc ha rg eab le de bt w a s n o t a co ns id erat io n of co ur t whe n di sa ll owi ng sp eci al

tre at m en t fo r no n- di sc ha rg eab le st ud en t l oa n d eb t).

The Deb to rs do no t de ny th at th ey are ab le to c a r r y o ut a pl an wit ho ut th e

di sc riminat io n. And th ere is no su gg es ti on ot he rwis e. The Deb to rs ’ Fi na l Pl an was

co nf irmed by th e ba nk ru pt cy co ur t an d th e Deb to rs ha ve no t co nt es te d th e Trus te e’s

as se rti on th at th e Deb to rs ha ve be en m ak in g pa y m en ts un de r th ei r Fi na l Pl an

. The re

i s n o r eq ui rem en t, ba se d on pu bl ic po li cy or ot he rwis e, to pa y th e un se cu red n o n

pr io rit y no n- di sc ha rg eab le tax cla im s i n fu ll th ro ug h t he pl an

. Se e Gro ves , 39 F.3 d

21 5 (p ub li c po li cy di d no t req ui re pa y m en t of st ud en t lo an de bt in fu ll un de r pl an an d

the re w as no th in g el se m an da ti ng su ch pa y m en t). The Deb to rs ex pr es s di ss at is facti on

wit h th e fo ur -p art te st ad op te d in Les er

, arg ui ng th at ap p l ic at io n of it (p art ic ul arl y

th e in qu iry reg ard in g whe t h e r a d e b to r can carr y ou t a pl an wit ho ut th e

di sc riminat io n)

, sh ou ld be reco ns id ered

. W e are bo un d to fo ll ow th e te st ad op te d in

Les er

.

Lik e in Gro ves

, th e pl an th e Deb to rs se ek im pr op erl y pu ts th e Deb to rs ’ de si re

fo r a fres h st art si gn ifi can tl y ah ead of th e in te res ts of th e ot he r cred it or s. Se e Gro ves

,

39 F.3 d 21 5 (s ig ni fic an tl y be tt er tre at m en t of no n- di sc ha rg eab le de bt “ m or e th an

ov erb al an ce[d ] th e de bt or s’ de si re fo r a cl ean sa le as ag ai ns t fai rn es s to th ei r ge ne ral

un se cu red cred it or s.”) (q uo ti ng di st ric t co ur t’s an al y si s i n sa m e cas e) (q uo ta ti on

m ark s o m it te d)

.

By as ki ng fo r sp eci al tre at m en t of th ei r ta x cl ai m s, th e Deb to rs as k th ei r ot he r

un se cu red no n- pr io rit y cred it or s t o pa y fo r th e Deb to rs ’ fai lu re to fil e ti m el y ta x

ret ur ns

. Se e Gro ves v. La Bar ge (In re La Bar

ge ), 16 0 B.R. 12 1, 12 3 (E.D. Mo

. 19 93 )

(q uo ti ng In re Sa ul te r, 13 3 B.R. 14 8, 14 9 (Ban kr

. W .D. Mo

. 19 91 ) ) ( “t o al lo w

di sc riminat i on so le ly on th e ba si s of no n- di sc ha rg eab il it y en ab le s th e de bt or

. . . . ‘[i]n es se nc e

. . . [to ] sh ift [ ] th e st ud en t lo an no n- di sc ha rg eab il ty bu rd en fro m he rs el f

on to he r ge ne ral un se cu red cred it or s.’ ”), af f’d 39 F.3 d 21 2

. The ba nk ru pt cy co ur t

-9-pr op erl y he ld th at su ch tre at m en t un fai rly di sc riminat es ag ai ns t th e ot he r un se cu red

no n- pr io rit y

cred it or s.

CONCLUSI ON

The d eci si on of t he ba nk ru pt cy co ur t i s AFF IRM ED.

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