Statue of limitations after bankruptcy dismissal

[Mary Irene]

This is a question I can't find an answer to. Let's say that all your charge cards were charged off after 6 months of non-payment in Dec of 2005. Then, you filed for Ch 13 and were confirmed in Sept of 2007 So there was a dismissal of the Ch 13 in Oct of 2008. Before the dismissal, there were 2 payments sent out to the non-secured group of creditors. How does this work in regards to the SOL running out? Does it start all over again from day 1 due to the couple of payments the trustee sent out? Or does it continue on from the last date of deliquincy, which was Dec 2005, which would make put it at 3 years. Thanks.

[magyar123]

I think the SOL would restart from the date of the last payment - don't think it matters who - you or the trustee made the payment. Note the word " think".

[justbroke]

Read your State law.

Your first issue is that Bankruptcy will generally TOLL the Statute of Limitations for debt. That is, the clock stops once you file for Bankruptcy. The clock restarts when the Bankruptcy is dismissed or discharged.

The second one is the matter of the payment. A plain reading is that any payment would reset the clock. however, the payment from the Trustee is not an acknowledgment of the debt, and therefore, if you argue it correctly, should not reset the clock! In this case, the SOL would only be tolled during the active Bankruptcy.

There's a very good case on this in the State Superior Court which had a very similar situation.

http://www.aoc.state.nc.us/www/publi...0/990444-1.htm

(I've been reading up on tolling alot lately!)