In the Matter of: Anderson

Dist. Ct. did not err in reversing Bankruptcy Ct. order finding that creditor could assert $650,000 deficiency claim against debtors, where creditor had previously received prior state court in rem judgment in foreclosure action against debtors and others arising out of sale of property that debtors co-owned with others, but had failed to seek deficiency judgment against debtors as it had done with co-owners of said property. Creditor could not seek deficiency judgment, since it had presented claims based on mortgage and note in single action in state court and failed to seek deficiency judgment against debtors on note, especially where, as here, Illinois case law precluded creditor from splitting its claim. As such creditors who do not seek deficiency judgments in foreclosure actions cannot seek that relief in different proceeding. Moreover, if creditor cannot obtain deficiency judgment in state court, section 28 USC section 1738 precludes it from subsequently getting one in federal court .