Court finds failure to plead bankruptcy discharge does not waive affirmative defense in post-discharge foreclosure

The New Jersey Appellate Division recently held that a debtor’s failure to plead a bankruptcy discharge does not waive affirmative defense in a post-discharge foreclosure action. The debtors under a bankruptcy case later filed an action against a creditor, seeking to quiet title to their home and prevent the creditor from pursuing claims under the subject note, mortgage or guaranty.