[WSBARP] Length S/L on real prop secured debt is tolled by stay?

[Eric Nelsen]

I don't practice bankruptcy, and I'm having a difficult time on what I
think are two pretty basic questions for anyone who does.

 

How long is a statute of limitations tolled by the Sec. 362 automatic
stay, where the debt in question is a loan secured by a Deed of Trust on
real property?

 

More than 6 years have passed since client last made a payment on the
debt, so S/L is passed by strict calendar date.

 

But, client was in a Ch. 7 bankruptcy. It was filed on "Day 1", debtor was
discharged on Day 97, and the case was closed and trustee discharged on
Day 922. The entire bankruptcy proceeding occurred before the strict S/L
expiration.

 

RCW 4.16.230 says the S/L is tolled by a "statutory prohibition" on
commencing an action. But I find no case law confirming that the Sec. 362
stay is included. Is that just so basic that nobody bothers to contest it
or cite it in state court?

 

Also, Sec. 108(c) says that the S/L expires at the later of (a) normal S/L
plus tolling period, or (b) 30 days after notice of termination of the
stay under Sec. 362.

 

When did the stay terminate here? For most debts, it appears the stay
terminates at discharge of the debtor, Sec. 362(c)(2)(C) (here, Day 97).
But this particular creditor is secured and foreclosure was stayed--so
does that mean it's instead "the stay of an act against property" under
Sec. 362(c)(1), which means the stay lasts until "such property is no
longer property of the estate"? Which in this case is, I think, when the
trustee was discharged (Day 922), because the trustee had been making some
attempts to sell the real property, but finally gave up and closed the
case.

 

Any help, citations, pointers to places I can do more research would be
appreciated. Thanks!

 

Sincerely,

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1320 University St

Seattle WA  98101-2837

phone 206-625-0092

fax 206-625-9040

 

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