Case Summary:
The U.S. Trustee commenced an action seeking denial of discharge under 11 U.S.C. § 727 in a voluntary Chapter 7. Defendant-Debtor consented to a waiver of discharge and an order denying discharge was entered in the Debtor’s main case. Following a motion for summary judgment, the Court held it would abstain from the proceeding since discharge was waived by Debtor and discharge was denied. Plaintiffs indicated a desire that the Court continue with the scheduled trial to determine the amount of the debt owed by Defendant to Plaintiffs. The Court found that it lacks subject matter jurisdiction as it related to Plaintiffs’ claims because the debt was already established as nondischargeable. The amount of the debt is neither “arising out” of or related to Title 11 of the United States Code as required by 28 U.S.C. § 1334 and 11 U.S.C. § 157(c)(1). The Court further held that the Plaintiffs’ adversary proceeding is moot because the order waiving and denying discharge in Debtors’ case renders the Court unable to grant Plaintiffs any meaningful relief in addition to what they have already received.

Statute/Rule References:
28 U.S.C. § 157(c)(1) -- Core Proceedings
28 U.S.C. § 1334 -- Abstention

Key Terms:
Jurisdiction