IN RE SCHWARTZ

No. 90-35830.

954 F.2d 569 (1992)

In re: Russell SCHWARTZ; Linda Schwartz, Debtors. Russell SCHWARTZ; Linda Schwartz, Appellants, v. UNITED STATES of America, Appellee.

United States Court of Appeals, Ninth Circuit.

Decided January 22, 1992.


Attorney(s) appearing for the Case

Joseph L. Koplin, Moschetto and Koplin, Bellevue, Wash., for debtors-appellants.

Gary R. Allen, Tax Div., U.S. Dept. of Justice, Washington, D.C., for appellee.

Before WRIGHT, BEEZER and WIGGINS, Circuit Judges.


WIGGINS, Circuit Judge:

Debtors Russell and Linda Schwartz appeal from a Bankruptcy Appellate Panel (BAP) decision that an IRS tax penalty assessed in violation of the Bankruptcy Code's automatic stay provision is voidable but not void. We reverse the judgment of the BAP.

BACKGROUND

The essential facts of this case are not in dispute. On February 25, 1983, the Schwartzes and their corporation, R.H. Schwartz Construction Specialties, Inc., filed a...

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