MUIR et al v. MCWILLIAMS et al
AARON MUIR and STEPHANIE MUIR |
TARA MCWILLIAMS and MATTHEW MCWILLIAMS |
1:2014cv00212 |
February 13, 2014 |
US District Court for the Southern District of Indiana |
Indianapolis Office |
Tim A. Baker |
Jane Magnus-Stinson |
Bankruptcy Appeal (801) |
28 U.S.C. ยง 0158 Notice of Appeal re Bankruptcy Matter (BA |
None |
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Filing 11 CLOSED REMANDED - The Court agrees with the Bankruptcy Court that if the McWilliams' claim falls within § 523(a)(3)(B), the State Court and the Bankruptcy Court would have concurrent jurisdiction to determine dischargeability of the debt associated with that claim, and that if it falls outside of § 523(a)(3)(B) the Bankruptcy Court would have exclusive jurisdiction to decide that issue. The Court disagrees, however, with the Bankruptcy Court's conclusion that the McWilliams ' claim falls within § 523(a)(3)(B)'s parameters. Accordingly, the Court REVERSES the Bankruptcy Court's grant of the McWilliams' Motion to Dismiss and its dismissal of the Second Adversary Proceeding, and holds that the McWi lliams' claim does not fall within § 523(a)(3)(B) because the Muirs did not know about it until after receiving their Chapter 7 discharge. As a result, the Bankruptcy Court has exclusive jurisdiction to determine whether the debt associated with the McWilliams' claim is dischargeable, and the Court REMANDS this matter to the Bankruptcy Court and ORDERS the Bankruptcy Court to reinstate the Second Adversary Proceeding and to resolve the issue of dischargeability on the merits. Signed by Judge Jane Magnus-Stinson on 6/30/2014.(JKS) |
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