Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.
The statute of limitations on open accounts (credit card accounts) and contracts is 6 years under New Jersey Code §2A:14-1. However bankruptcy tolls the applicable statute of limitaitons because 11 USC 362 ("automatic stay") prohibits creditors from pursuing a debtor while in bankruptcy.
This is set out in 11 USC § 108(c), which is a tolling provision; it extends state statutes of limitations for creditors who are barred by the automatic stay from taking timely action against the debtor. See Young v. United States (In re Young), 233 F.3d 56, 59 n.3 (1st Cir. 2000).
Thus, the time you were in bankruptcy doesn't count against the statute of limitations applicable to the creditor's right to pursue the debt. Thus, there would have to be 6 years from the last payment or charge on the account - less the years you were in bankruptcy - in order for the debt to be barred.
It provides in pertinent part:
If applicable nonbankruptcy law . . . fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, . . . and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of -(1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or
(2) 30 days after notice of the termination or expiration of the stay under section 362 . . . of this title . . . with respect to such claim.
Please let me know if you have any additional questions.
Also, please remember to rate my answer above so l may be given credit for my time researching and answering your question. Thanks.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).