Rooker-Feldman Provides For Preservation of Favorable State Court Decision

In a proceeding to determine whether the debtors are subject to creditors' proof of claim stemming from a foreclosure action the debtors took the position that creditor, a bank, was not the actual holder of the note. The debtors also argued that the prior creditors were not proper holders of the note. The creditors opposing motion challenged the exercise of jurisdiction by the court on the grounds that hearing the matter would violate the Rooker-Feldman doctrine by altering the state court's ruling in the foreclosure. The Rooker-Feldman doctrine provides that the only court with authority to review a state court's final judgment is the United States Supreme Court. A state's district court is not authorized to review a decision of the state court. Because the bankruptcy court is a lower federal court, the bankruptcy court may not reconsider a state court judgment. This means a party with a favorable state court judgment can challenge the review of the judgment by a bankruptcy court in order to retain the favorable status. If you are facing foreclosure, considering bankruptcy or an appeal in a bankruptcy matter, you should seek experienced legal counsel immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.