The short sale happened in 2009

Received a 1099C for 2009 for the difference in loan principal amount and short sale payoff

We paid taxes on that 1099C amount.

At the end of 2011, we received notice of $40,000 debt with lender using same loan account number.

Upon further research, the 40,000 may be interest and late penalties that built up prior to selling but we thought that was all forgiven....especially since the wording on the short sale document says "We will accept a minimum of $$$$$$$ to settle your account and release the lien"  AND 1099C was generated.

Can Chase go after the interest and penalties (and maybe some Lawyer Fees for starting the foreclosure process) even though they sent a 1099C cancellation of debt?

Any help would be appreciated.  We thought we had put this matter behind us and now this latest "debt" is going to put us under and quite frankly may be the end of my marriage.