On January 18, 2023, the Second Department issued a decision in JP Morgan Chase Bank, NA v. Cantwell, 2023 NY Slip Op. 00210, holding that a borrower’s discharge in bankruptcy did not bar a foreclosure action, explaining:
Here, Cella contends that the plaintiff failed to state a cause of action because Cantwell had filed for Chapter 7 bankruptcy and received a discharge. However, although a bankruptcy discharge extinguishes one mode of enforcing a note—namely, an action against the debtor in personam, it leaves intact another—namely, an action against the debtor in rem. Thus, Cantwell’s discharge in bankruptcy did not impair the plaintiff’s ability to bring an action to foreclose the mortgage. Cella was not entitled to dismissal of the complaint insofar as asserted against him for failure to state a cause of action due to Cantwell’s discharge in bankruptcy.