Q: Does bankruptcy court have jurisdiction regarding a state judgment of foreclosure that is void?
Refinance was canceled 8 years ago, and lender was allowed to proceed with void mortgage and note in state court.
A: If the state court issued a judgment of foreclosure, even if you believe that the note and mortgage were somehow void, your remedy would be to challenge that judgment in that court with a motion to reargue or an appeal to the higher state court. If you try to collaterally attack it in a bankruptcy court, you will likely fail. The bankruptcy court and all federal courts give state court judgments what is called full faith and credit and the prior proceeding in state court may bar subsequent litigation of the same issue under the doctrine called res judicata. This doctrine bars claims that were actually litigated before or could have been raised in the prior proceeding. There's also a federal doctrine that applies in the bankruptcy court called the Rooker-Feldman doctrine which basically works to prevent lower federal courts from hearing appeals of state court decisions. Please note that this is provided for general information only and does not create any attorney-client relationship. Our firm requires a signed retainer agreement to create such a relationship. Laws can vary in different jurisdictions. You should consult with a local attorney for specific legal advice about your case. Best of luck.
Daniel Michael Luisi agrees with this answer
A: Yes and no. It applies State law if the claim is not final in State court. If it has been made final in state court, then the bankruptcy court must honor the state court judgment. There are bankruptcy options to modify, etc., even if there is a judgment.
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