Incentive Insider

I.History of Tax Claims in BankruptcyB.Calls for Reform In 1997, the National Bankruptcy Review Commission released its final report of the tax advisory committee. In this report, the committee recommended that numerous changes to the Bankruptcy Code.

I.History of Tax Claims in BankruptcyIn 2005, the Bankruptcy Code experienced one of the largest revisions in its history. Part of this revision included a reevaluation of the treatment of secured tax claims in the bankruptcy process.

IntroductionMuch like other claims in bankruptcy, tax claims exist in three basic forms: unsecured, secured, and priority. The first class, unsecured, non-priority claims are treated much like a general unsecured claim would be treated, and is beyond the scope of this paper.

This paper continues to explore tax claims within a Chapter 11 Reorganization. In this paper, the focus shifts from the perspective of the trustee and plan creator, to that of the lien holder, or government entity.