Document: 376 U.S. 358 84 S.Ct. 906 11 L.Ed.2d 772 Paul F. BRUNING, Petitioner,v.UNITED STATES. No. 423. Argued March 3, 1964. Decided 23, Ernest R. Mortenson, Pasadena, Cal., for petitioner. Philip B. Heymann, Washington, D.C., respondent. Mr. Chief Justice WARREN delivered the opinion of Court. 1 The issue presented in this case is whether United States entitled to recover, out assets acquired by a debtor after his adjudication bankruptcy, post-petition interest on tax assessment which (under § 17 Federal Bankruptcy Act, 30 Stat. 544, 550, as amended, U.S.C. 35) was not discharged bankruptcy proceedings. essential facts are dispute. Petitioner incurred withholding and federal insurance contributions taxes during fourth quarter 1951 but failed pay those when due. In 1952, an made against On July 6, 1953, petitioner filed voluntary petition adjudicated bankrupt District Court Western Louisiana. Director Internal Revenue claim proceedings assessed amount owed petitioner, received small distribution estate. granted discharge October closed June 1954. 2 1957, claims refund income paid years 1953 1954, resulted being allowed credit respect years. 7, 1958, applied entire art 1954 credit1 balance F.I.C.A. 1951, plus date—including had accrued period between filing petitioner's (July 1953) date payment (March 1958). This interest, totals about $795, subject present controversy. did question Director's right collect from unpaid principal debt pre-petition interest. However, contending that he liable accruing filed, brought suit Southern California portion held personal liability proceedings, Appeals Ninth Circuit affirmed. Due apparent conflict circuits2 potentially recurring nature involved, we certiorari, 375 920, 264, L.Ed. 164. We affirm decision below. 3 Section 35, provides relevant part: 4 'A shall release all provable debts, allowable full or part, except such (1) due levied * *.' 5 It undisputed that, under 17, remained personally part prepetition satisfied courts below also debt, find no substantial reason reverse holding. Initially, one would assume Congress, providing certain type should survive debtor, intended continue well its amount. Thus, it has never been seriously suggested creditor whose trustee loses post-bankruptcy action personally. most situations, considered be cost use amounts owing incentive prompt repayment and, thus, integral continuing debt. Interest seem fit description. logic indicate excepted Act recoverable later personally, there evidence any congressional intent contrary 6 suggests Government might have ignored proceeding entirely upon undischarged collected both But asserts once proceeding, rights became limited recovery sums trustee, including argument based 6873(a) Code provides: 7 'Any taxpayer notice demand Secretary delegate termination proceeding.' 8 indication wording history section meant limit Government's liability. Nor aided now-familiar principle main purpose let honest begin financial life anew. As noted, compassionate debtors. Rather, demonstrates judgment problems—e.g., financing government—override value giving wholly fresh shart.3 Congress clearly debts bankruptcy. general humanitarian believe different intention with regard debts. 9 Finally, urges consider light New York v. Saper, 336 328, 69 554, 93 710. rule liquidation estate long will only Sexton Dreyfus, 219 339, 31 256, 55 244. supra, applies other instant concerns debtor's postpetition survives extent traditional denies even if underlying 17. hold does so apply. 10 basic reasons denying avoidance unfairness competing creditors administrative inconvenience.4 These inapplicable case, collection cannot inconvenience administration estate, delay unduly, diminish favor high at expense creditors. found applicable Here, thus rule—inapplicable, remains, debtor. Affirmed. remainder distributed See Mighell, 273 F.2d 682 (C.A.10th Cir. 1959). One refusing make dischargeable desire prevent evasion. 83 Cong.Rec. 9106 (1938). American Iron & Steel Mfg. Co. Seaboard Air Line Co., 233 261, 266, 34 502, 504, 58 949: 'And true, Tredegar 105 C.C.A. 501, Cir., 183 Fed. (289) 290, rule, property insolvent custodia legis thereafter payable fund realized sale property. because lost their interest-bearing quality period, necessary enforced distribution, fact receiverships generally insufficient full. If were equal dignity bore same rate receivership final immaterial dividend calculated basis alone combined. some carry low rate, hence inequality result incident collecting distributing . act law, thereby gain advantage suffer loss. For like reasons, funds sufficient dignity, running receivership; if, good fortune management, proved full, paid.' Vanston Bondholders Protective Committee Green, 329 156, 164, (67 237, 240, 91 162): 'Accrual simple unsecured prohibited order continuous recomputation causing could avoided. Moreover, diverse rates court dates neither nor loss caused solely delay.' Because rests practical considerations, that: 'The stops understood practice rather than substantive law.' Collier, (14th ed., 1961) 1858.

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