Memorandum of Decision Re: Chapter 13 Eligibility

DO NOT PUBLISH This case disposition has no value as precedent and is not intended for publication. Any publication, either in print or electronically, is contrary to the intent and wishes of the court.
Judge's Decisions
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re NORMAN L. VROMAN,                                                                              No. 99-10817 Debtor(s). ______________________________________/
Memorandum
     Debtor Norman L. Vroman filed a Chapter 7 petition on June 25, 1996, and received a discharge in that case. After the discharge, the Internal Revenue Service took the position that some $3.4 million in tax debt was not discharged. On March 15, 1999, Vroman filed a Chapter 13 petition commencing this case. The court will dismiss the case, as the IRS debt renders him ineligible for relief under Chapter 13.      Section 109(e) of the Bankruptcy Code sets forth debt limits which Vroman does not meet. The fact that he disputes the IRS liability is irrelevant. So long as a debt is subject to ready determination and precision in computation of the amount due, then it is considered liquidated and included for eligibility purposes under § 109(e), regardless of any dispute." In re Nicholes, 184 B.R. 82, 89 (9th Cir.BAP 1995)(emphasis added).      Vroman is certainly not without a remedy. His proper course of action is to reopen his Chapter 7 case and file a complaint to determine the dischargeability of his tax debt pursuant to FRBP 4007(b). Rule 7001(6) requires that dischargeability be determined only in an adversary proceeding.      For the foregoing reasons, this Chapter 13 case will be dismissed, with a bar to refiling. Vroman may not file another Chapter 13 petition until he has obtained a final judgment of a court of proper jurisdiction establishing that his tax debt has been discharged, or the government readily admits that fact.
Dated: May 18, 1999                                                                                 ____________________________                                                                                                                      Alan Jaroslovsky                                                                                                                      United States Bankruptcy