IN RE: LISANDRO MENDEZ MORALES, JOHANA MORALES CABAN, Debtors;LISANDRO MENDEZ MORALES, JOHANA MORALES CABAN, Plaintiffs vs. DORAL BANK; LUCAS P. VALDIVIESO GALIB, ESQ., PUERTO RICO TELEPHONE CO., Defendants, 2012 Bankr. LEXIS 907

Summary

The creditor was the only secured creditor of the debtors, with a secured interest in the debtors' real property. The debtors received a discharge. Subsequently, the creditor filed a complaint to foreclose the property and to collect monies from the debtors, present and future, in excess of the recovered value, if any. The state court entered a foreclosure judgment in default against the debtors in the creditor's favor, including the creditor's prayer for relief that the foreclosure include the collection of monies, present and future, in excess of the recovered value of the property. The court held that the creditor violated the discharge injunction when it filed a foreclosure complaint that expressly requested in its prayer for relief the debtors' in personam liability in deficiency in value of the property. The creditor's foreclosure complaint did not violate the automatic stay because the stay ceased upon the entry of the discharge order pursuant to § 362(c)(2)(C).