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In re: Javier Gonzalez

22 B 08732
Mortgage company (“Reliant”) filed proof of claim based on foreclosure judgment.  Debtor objected to Reliant’s claim on the grounds that the foreclosure litigation was commenced after the statute of limitations had expired.  Reliant made two arguments in response: (1) the Rooker-Feldman doctrine precluded bankruptcy court review of the foreclosure judgment; and (2) Debtor made a payment which restarted the statute of limitations.  HELD: Objection to claim overruled, although not because of the Rooker-Feldman doctrine.  In fact, because Illinois foreclosure judgments are interlocutory until the sale is confirmed, Rooker-Feldman did not apply.  However, Debtor made a payment on the mortgage in July 2022, less than a month before filing for relief under the Bankruptcy Code.  Although the limitations period had passed, under applicable Illinois law, this payment restarted the statute of limitations clock.  Therefore, Reliant’s claim was not unenforceable under state law and the court overruled Debtor’s objection.

Thursday, April 20, 2023