Soverign Immunity for the State in Bankrtupcy Court?

      In the case of In Re Burke, No. 97-8917 in the Eleventh Circuit Court of Appeals, the court ruled against the State of Georgia Department of Revenue's contention that the state had immunity against the bankrupting of taxes. The state moved to dismiss the Burkes' adversary proceeding, relying on Seminole Tribe of Florida v. Florida, 517 U.S.44, 116 S.Ct. 1114, 134 L.Ed2d 252 (1996), by arguing that the relief sought by the Burkes was barred by the Eleventh Amendment. 

      The Eleventh Amendment states:

The Judicial power of the Untied States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by citizens or Subjects of any Foreign State.

      The Eleventh Circuit determined that the State of Georgia waived its sovereign immunity by filing a proof of claim in the debtors' respective bankruptcy proceedings.   The Court cited Gardner, 329 U.S. at 574,67 S. Ct. 472 in support of its conclusion.  If your state claims that it has sovereign immunity and that the taxes are not dischargeable, then raise this issue with the court.  If the state did not file a proof of claim, then you may need to re-open your bankruptcy to file a proof of claim for the state.  Isn't it amazing the ends that the government will go to in order to take rights away from the people!