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For purposes of section 108, a “title 11 case” is defined as
“a case under title 11 of the United States Code (relating to
bankruptcy), but only if the taxpayer is under the jurisdiction
of the court in such case and the discharge of indebtedness is
granted by the court or is pursuant to a plan approved by the
court.” Sec. 108(d)(2).
The partnership’s chapter 11 bankruptcy was a case under
title 11 of the United States Code. See 11 U.S.C. ch. 11 (2000).
Pursuant to its December 19, 1995, order, the bankruptcy court
discharged and released petitioner from all liability to the
trustee, the bank, and all other creditors that might have claims
arising from or relating to the partnership, petitioner’s status
as a general partner in the partnership, and the April 9, 1985,
personal guaranty agreement. In the same order, the bankruptcy
court explicitly asserted its jurisdiction over petitioner for
this purpose. Giving due regard to principles of judicial comity,
we discern no reason to second-guess the bankruptcy court’s
assertion of jurisdiction over petitioner in the partnership’s
chapter 11 bankruptcy case. See 28 U.S.C. secs. 151, 157, 1334
(2000).
We conclude that petitioner’s debts in question were
discharged “in a title 11 case” within the meaning of section
108(d)(2). Accordingly, we hold that petitioner’s discharge of
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Last modified: May 25, 2011