Still v. Tennessee, Department of Revenue (In Re Rogers)

RALPH H. KELLEY, Bankruptcy Judge.

The chapter 13 trustee sold real property belonging to the debtor. The property was subject to the mortgage of Citizens Savings and Loan, and before confirmation of the Chapter 13 plan, was subject to the State of Tennessee’s tax lien. The question is how much, if any, from the sale proceeds must be paid to the State to satisfy the debt secured by its tax lien. The facts are as follows.

Maggie Shipley Rogers, the debtor, operated a grocery store in this county. She was obligated to collect and pay sales tax to the State but failed to do so. In May, 1983, the…