Statute of Limitations for denied discharge unsecured debts

[Liz985]

Can someone tell me if the statute of limitations still apply on unsecured/credit card debts listed in a non-dischargeable BK7? Thanks you. Liz

[justbroke]

Can someone tell me if the statute of limitations still apply on unsecured/credit card debts listed in a non-dischargeable BK7? Thanks you. Liz

What do you mean a "non-dischargeable" Chapter 7? I have never heard of this type of proceeding.

If you are referring to specific debts that were non-dischargeable based on 11 USC 523 or based upon a complaint in the favor of the creditor, then they are still subject to the statute of limitations (SOL). The bankruptcy would toll the SOL, but other factors, depending on State non-bankruptcy law, may also toll the SOL. However, the debts are subject to the SOL for the State in which they are domesticated. If there was a recorded judgment, or judgment lien, the judgment would typically (under State non-bankruptcy law), have a renewable 10-year collection period. So a judgment could extend the SOL.

What is your real situation and what are you trying to do? Otherwise, the answers are all just speculative.

[Liz985]

What do you mean a "non-dischargeable" Chapter 7? I have never heard of this type of proceeding.

If you are referring to specific debts that were non-dischargeable based on 11 USC 523 or based upon a complaint in the favor of the creditor, then they are still subject to the statute of limitations (SOL). The bankruptcy would toll the SOL, but other factors, depending on State non-bankruptcy law, may also toll the SOL. However, the debts are subject to the SOL for the State in which they are domesticated. If there was a recorded judgment, or judgment lien, the judgment would typically (under State non-bankruptcy law), have a renewable 10-year collection period. So a judgment could extend the SOL.

What is your real situation and what are you trying to do? Otherwise, the answers are all just speculative.

It was a stipulated order to deny discharge based on 11 USC ~727/724.

[justbroke]

In any event, if your were denied discharge with prejudice, then you can never discharge this debt in a bankruptcy proceeding. I do not believe that affects any limitations on collections (statute or limitations) except from a tolling perspective.

What is the real issue? Is it that you believe a particular debt has reached the SOL and you feel you are at the finish line or are you worried that the SOL was affected by the bankruptcy ruling?

[Liz985]

In any event, if your were denied discharge with prejudice, then you can never discharge this debt in a bankruptcy proceeding. I do not believe that affects any limitations on collections (statute or limitations) except from a tolling perspective.

What is the real issue? Is it that you believe a particular debt has reached the SOL and you feel you are at the finish line or are you worried that the SOL was affected by the bankruptcy ruling?

The dismissal did not mention whether I was denied with prejudice. I'm pretty sure it is with prejudice but I'm not as concerned about the ability to EVER discharge through bk proceeding.

I'm just trying to prepare myself if and when the creditors decide to pursue lawsuits in the future as I do not have ability to pay. This is why I would like to know if the BK ruling does affect the SOL. If not, I can delay and fight it until SOL run out. I hope this helped clarify.

If SOL is "reset" by the denied discharge, what would be considered the "reset" date? The date of original petition filing, denial, etc? If SOL is not reset, what date does the SOL originally start? The date of the last payment made on the account?

[justbroke]

The SOL is tolled by the bankruptcy. So, if you were in a pending bankruptcy status for 12 months, while you fought with the UST, then the SOL is extended by that same 12 months. Otherwise, unless they have a judgment, the SOL will pass and they will be... SOL. If they reduce it to a money judgment and record it (creating a judgment lien), then it could be 10 years or more (if renewed).

[Liz985]

Ok, thank you for the explanation!

[justbroke]

Please remember, that some States allow tolling if you move from the State where the creditor last knew you lived. So, moving to a different State could also toll the SOL.