May, J.
Victor Goodman and Jacquelyn Burke (collectively, “Goodman”) appeal a summary judgment in favor of the Internal Revenue Service (IRS). The court granted summary judgment after finding tax liens remained on property Goodman bought even though a bankruptcy court had ordered the property could be sold free and clear of all liens. As the trial court was not the proper forum for the resolution of that matter, we vacate its judgment and direct it to dismiss Goodman’s complaint to quiet title.
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The jurisdiction of the bankruptcy court is exclusive of all other courts. Id. When the bankruptcy court addresses a specific issue bearing on a state claim, we should apply the bankruptcy court’s finding unless doing so would compromise Indiana’s legal framework. Brewer v. EMC Mortgage Corp., 743 N.E.2d 322, 324 (Ind. Ct. App. 2001), reh’g denied, trans. denied.
11 U.S.C. § 541 provides that the commencement of a bankruptcy case creates an estate, and which estate includes “all legal or equitable interests of the debtor in property as of the commencement of the case.” As the purported transfer to Goodman took place after the SeRines filed for bankruptcy, the property presumably was part of the bankruptcy estate. Whether any interest could have been transferred to Goodman, or the nature of any such interest, are questions of bankruptcy law that must be resolved by the bankruptcy court, not by our state courts.
That the SeRines’ bankruptcy case was ultimately dismissed does not change that conclusion. Dismissal of a bankruptcy proceeding normally results in dismissal of related proceedings because federal jurisdiction is premised on the nexus between the underlying bankruptcy case and the related proceedings. Matter of Statistical Tabulating Corp., Inc., 60 F.3d 1286, 1289 (7th Cir. 1995), cert. denied sub nom. LaSalle Bank Lake View v. United States, 516 U.S. 1093 (1996). But that general rule is not without exceptions. Id. “Section 349 of the Bankruptcy Code lists the various effects of dismissal of the underlying bankruptcy case; conspicuously absent from that list is automatic termination of jurisdiction of related cases.” Id. (quoting In re Carraher, 971 F.2d 327, 328 (9th Cir. 1992)). In the case of adversary proceedings, jurisdiction is not automatically terminated with the dismissal of the underlying bankruptcy case, and bankruptcy courts have discretion to retain jurisdiction over adversary proceedings. Id. The rationale for retention of jurisdiction over an adversary proceeding is that some cases have progressed so far that judicial interference is needed to unravel or reserve the rights of parties. Id.
In Statistical Tabulating, there was a live controversy between two creditors when the bankruptcy court dismissed the underlying bankruptcy, and the dismissal did not fully resolve or otherwise render moot the issue on appeal. Id. at 1290. The Seventh Circuit accordingly held the bankruptcy court should have revisited the agreed order as the district court had directed. Id. As the issues in the case before remain subject to bankruptcy court jurisdiction, we vacate the trial court’s judgment and direct it to dismiss the quiet title action.
Judgment vacated and cause remanded.
BAILEY, J., and BRADFORD, J., concur.