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Eleventh Circuit Court of Appeals Holds District Court Is Without Jurisdiction to Rule on Alleged Violation of Bankruptcy Discharge Injunction

In Jones v. CitiMortgage, Inc., et al., Case No. 15-14853, the plaintiff filed suit in federal district court to stop the foreclosure sale of his home. One of his allegations was that the foreclosure violated a the bankruptcy discharge injunction of Section 524 because the defendants were attempting to hold him personally liable for the mortgage debt. The Eleventh Circuit Court of Appeals held that the federal district court lacked jurisdiction to rule on an alleged violation of the bankruptcy discharge injunction because the federal district court had not issued the discharge order. While acknowledging that the district court had original subject matter jurisdiction related to bankruptcy cases, the Eleventh Circuit noted that the discharge order had been issued by the United States Bankruptcy Court for the Northern District of Georgia and that court, not the district court, "possessed the power to enforce compliance with the discharge injunction and 'punish contempt of that order.'"

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