[WSBARP] DOT Survived after BK

Wed Mar 4 15:49:15 PST 2026

Washington State law regarding the statute of limitations for installment
contracts, specifically *RCW 4.16.040* (Actions limited to six years) and *RCW
62A.3-118* (Statute of limitations for notes). Recent Washington State
Supreme Court decisions, including *Copper Creek (Marysville) Homeowners
Association v. Kurtz* and *Merritt v. USAA Federal Savings Bank* (both
decided July 2023), clarify that for installment obligations secured by a
deed of trust, the six-year statute of limitations applies to each
individual installment payment as it becomes due. Consequently, while the
lien survives, collection actions for individual payments due more than six
years ago may be time-barred.

Look out for loan modifications and deferments in the file.

*Mark C. McClure* *| *
*Managing Attorney *Law Office of Mark McClure, PS

*"Why Retire With Debt?"*1103 West Meeker Street, #101
Kent, WA 98032

Office:  253.631.6484 (Leave Msg - Will be returned within 24 hours)
Email: Mark at McClureLawGroup.com
Web: www.McClureLawGroup.com <http://www.mcclurelawgroup.com/>

*Notice of Unavailability:*  *TBD*

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building.  Call *253-631-6484 * to schedule.*

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*From:* wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
*On Behalf Of *Eric Nelsen
*Sent:* Wednesday, March 4, 2026 3:30 PM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] DOT Survived after BK

If I can jump in and also ask Tim - Even though bankruptcy discharge blocks
personal liability, would the statute of limitations still run on the debt
in the ordinary fashion? So, if the S/L has passed on the underlying debt,
could the Deed of Trust be cancelled by quiet title under RCW 7.28.300?

Anticipating this is a 30-year installment debt, let’s say the statute has
run on 12 years’ worth of payments. Does that reduce the principal amount
for which the DOT can still be foreclosed?

Sincerely,

Eric

Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

eric at sayrelawoffices.com

*From:* wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
*On Behalf Of *Kevin Bukoskey
*Sent:* Wednesday, March 4, 2026 3:23 PM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] DOT Survived after BK

Okay, thanks Tim. So, basically, there is no way to remove the DOT from
title or from the risk of future foreclosure? Even though it's been ~18
years since his last payment?

*Kevin A. Bukoskey, Esq., JD, MBA*

*Attorney*

GOURLEY LAW GROUP

THE EXCHANGE CONNECTION

SNOHOMISH ESCROW

P.O. Box 1091

Snohomish, WA 98291

PH:  (360) 568-5065 (800) 291-8401

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*From: *wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
on behalf of Timothy Steen <tsteen at andersonhunterlaw.com>
*Date: *Wednesday, March 4, 2026 at 3:08 PM
*To: *WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject: *Re: [WSBARP] DOT Survived after BK

Kevin,

A bankruptcy generally does not discharge a valid deed of trust, absent
avoidance or similar special proceedings in the bankruptcy.  If the debtor
received a discharge, that eliminates the debtor’s personal liability.
Meanwhile, the lender can still foreclose the trust lien to satisfy the
indebtedness.  The client will likely have to handle the deed of trust as
it would any other trust lien.

Thanks,

Tim

[image: A black sign with white text Description automatically generated]

*Timothy E. Steen*

*Attorney | Anderson Hunter Law Firm*

2707 Colby Avenue #1001 | Everett, WA  98201

P.  (425) 252-5161 | D.  (425) 303-3125 | F.  (425) 258-3345

tsteen at andersonhunterlaw.com| www.andersonhunterlaw.com

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*From:* wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
*On Behalf Of *Kevin Bukoskey
*Sent:* Wednesday, March 4, 2026 2:40 PM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] DOT Survived after BK

Hi Listmates,

I have a new client who owns a property and had a Note/DOT. During “The
Great Recession”, he claimed BK, included the loan, and never made any
payments again and has not heard anything back from the lender either way.

Recently, he pulled a title report, and it seems that the DOT survived and
was not stripped in the BK.

When this happens, from a title standpoint, would you expect a quiet title
to remove the DOT, or is this something that has to be done via a court
order in BK court?

Thanks.

*Kevin A. Bukoskey, Esq., JD, MBA*

*Attorney*

GOURLEY LAW GROUP

THE EXCHANGE CONNECTION

SNOHOMISH ESCROW

P.O. Box 1091

Snohomish, WA 98291

PH:  (360) 568-5065 (800) 291-8401

Fax: (360) 568-8092

CONFIDENTIALITY NOTICE: This electronic mail transmission may contain
legally privileged, confidential information belonging to the sender. The
information is intended only for the use of the individual or entity named
above. If you are not the intended recipient, you are hereby notified that
any disclosure, copying, distribution or taking any action based on the
contents of this electronic mail is strictly prohibited. If you have
received this electronic mail in error, please contact sender and delete
all copies.
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