11th Circuit Affirms that a Final Discharge Order Moots Creditor’s Appeal of Dismissed Dischargeability Complaint

11th Circuit Affirms that a Final Discharge Order Moots Creditor’s Appeal of Dismissed Dischargeability Complaint

On March 8, 2019 the 11th Circuit Court of Appeals ruled that an appeal from an order denying a creditor’s complaint to determine dischargeability under 11 U.S.C. § 727 was moot when the debtor obtained a discharge.

In 2016, the Debtor filed his chapter 7 bankruptcy petition but failed to list the Creditor, in either Schedule D or F. Regardless, the Creditor filed a secured claim against Debtor’s real estate and subsequently filed an adversary proceeding seeking denial of discharge under 11 U.S.C. § 727. At trial, the bankruptcy court granted the Debtor’s motion for involuntary dismissal determining that the Creditor had failed to produce “a scintilla of evidence that would justify denial of discharge under 727.”

The Creditor appealed the bankruptcy court’s dismissal to the district court but did not seek a stay of the discharge in the underlying case. While the appeal was pending the bankruptcy court entered an order of discharge. The Creditor did not timely appeal the order of discharge and subsequently the district court dismissed the appeal as moot.

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