Legal Question in Bankruptcy in Illinois

Litigation After Bankruptcy Discharge

After the discharge of a mortgage through the filing of a petition, is it possible to litigate against an individual who has received a discharge. It is clearly understood the property is to be recovered by the lender, but is litigation through Chancery division and the entry of a default judgment permissible? Of course the entry of a judgment will appear on the credit file of the respondent. Is that permissible as well? Are there any options available to remove my name from title without litigation, such as a voluntary release of property, which is should also be covered by the petition itself?


Asked on 7/03/01, 9:07 am

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Litigation After Bankruptcy Discharge

Bankruptcy only discharges the borrower's personal liability on secured debt like mortgages. The creditor can still, after discharge, enforce its rights against the property by way of forclosure and sale. The proceeds of any such sale can be applied to the debt, even though the borrow himself no longer owes the money. The bankruptcy discharge does prohibit the creditor from proceeding against the borrower personally in any way.

For a more complete answer to your question, you should have a competent lawyer review the loan and mortgage documentation, as well as the bankruptcy proceedings, as what I stated above is only general information. Feel free to call me. Larry Stein. (630) 22101755.

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Answered on 7/03/01, 12:12 pm


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