Bankr. L. Rep. P 75,314 in Re Fred Kennerley, Debtor. Larry Allred v. Fred Kennerley, AKA Frederick L. Kennerley, Jr.

After Fred Kennerley received a discharge under § 727 of the Bankruptcy Code ( 11 U.S.C. § 727 ), the bankruptcy court barred further state court proceedings against him. The bankruptcy court determined that the fraud claim at issue in the state court action had been discharged along with Kennerley’s other debts because Larry Allred, the creditor, had failed to file a complaint of nondis-chargeability. The district court reversed, directing the bankruptcy court to allow the state court proceedings to go forward and to determine the dischargeability of any judgment recovered against Kennerley. Kenner-ley timely appealed. We have jurisdiction under 28 U.S.C. § 158 (d), and we reverse.

STANDARD OF REVIEW

Because this court is in as good a position as the district court to review the decision of the bankruptcy court, we review the bankruptcy court’s decision independently. In re Probasco, 839 F.2d 1352 , 1353 (9th Cir.1988). We review the bankruptcy court’s factual findings for clear error and review its legal determinations de novo. Id.

DISCUSSION

Allred advances three arguments against the bankruptcy court’s determination: (1) the motion to lift the automatic stay was a valid…