In re Clark
Jun
18
2012
Ruling
Deficiency claim allowed as protected by res judicata.
Procedural posture
Debtors, a married couple, objected to a $1.7 million proof of claim (POC) filed in their chapter 11 case by a bank that was asserting a right to a prepetition default deficiency judgment after the proceeds of its sale of real estate securing debtors' note were insufficient to pay the balance due on the note. Debtors sought to litigate claims that included that the foreclosure sale was conducted in bad faith and that the bank's bid was too low.
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Court
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