Michael V. Severo and Georgina C. Severo - Page 9




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          expiration of the 60-day period for objection.  Fed. R. Bankr. P.           
          4004(c)(1).                                                                 
               Under Bankruptcy Code section 523(a), not all debts may be             
          discharged, and often a discharge order of the bankruptcy court             
          will not state which particular debts are discharged and which              
          are not discharged (see Bankruptcy Official Form 18, Discharge of           
          Debtor).  Generally, however, if a discharge order is issued by             
          the bankruptcy court in a chapter 7 bankruptcy proceeding, a debt           
          will be discharged unless it is excepted from discharge.4                   
               Herein, the March 17, 1998, bankruptcy court discharge order           
          issued in petitioners’ favor did not state which of petitioners’            
          debts were to be treated as discharged and which of petitioners’            
          debts were to be treated as excepted from discharge.                        
               Whether a liability of a debtor in bankruptcy to pay Federal           
          income taxes is discharged by a chapter 7 bankruptcy court                  
          discharge order does not depend on whether the particular                   
          discharge order expressly states that the tax liability is                  
          discharged, but rather depends on whether the particular Federal            
          income taxes owed to respondent are to be excepted from discharge           

               4 In 11 U.S.C. (Bankruptcy Code) secs. 522 and 523,                    
          “excepted” and “exempt” are used as terms of art.  Generally,               
          “excepted” refers to debts of the debtor in bankruptcy that are             
          subject to creditor claims and not discharged under the                     
          provisions of the Bankruptcy Code, whereas “exempt” refers to               
          property included in the bankruptcy estate but not subject to               
          creditors’ claims.                                                          







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