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State court better suited for foreclosure proceeding

Foreclosure proceedings were commenced and one of the residents of the building made a motion to remove the case to federal court as reported by the New York Law Journal in a July 23rd, 2012 news article.

However, the District Court remanded the case because the removal to federal court was improper as the Defendant did not have a proper reason for removing the case. The court held that there was no federal jurisdiction in this case because since this is a bankruptcy claim the complaint referred to the bankruptcy court.

The complaint referred to federal law. However this is not enough to raise a federal question where the federal court would have jurisdiction over this case. Furthermore, New York state courts are better equipped in dealing with foreclosures and mortgages in New York. In addition only two of the named Defendants approved the removal to federal court.

We at the law offices of Jayson Lutzky, P.C. can provide you with the information you need when considering filing bankruptcy or if you have already filed. If you need to file for bankruptcy and you are in need of legal advice, please feel free to call us at 1-800-660-5299 for a free initial consultation or visit our website www.BankruptcyNYC.com.

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