Present Law Chapter 7 provides an in personam discharge. Thus, the discharge in Chapter 7 has no effect on secured claims. A debtor can value the property securing the lien, pay off the value of the secured claim under the Chapter 13 plan, and retain the property free and clear of the lien. Nobelman v. Am.
Case law splits.
If satisfied, then the government's lien is not reinstated. If avoided, then the government's lien is reinstated. The same issue arises if a case is converted to Chapter 7 instead of dismissed. Again, case law splits. Before the Commission Commission Track Number 333.