Q: Bankruptcy accelerates a debt, thus, does bankruptcy discharge starts the clock for the statute of limitations
to foreclose after the case is closed?Details:
1)The statute of limitations to foreclose in new york is 6 years from a triggering event. The courts have agreed that a lender's acceleration of the debt constitutes a triggering event. (e.g., "However, even if a mortgage
is payable in installments, once a mortgage debt is accelerated, the entire amount is due and the Statute
of Limitations begins to run on the entire debt’.” Burke, 94 AD3d at 982.
"Once the mortgage debt [is] accelerated, the borrowers’
right and obligation to make monthly installments cease[s] and all sums become immediately due and payable.” Fed. Nat’l Mtge. Ass’n v. Mebane, 208 AD2d 892,894 [2d Dept 1994], etc)Notice
that in all the real estate cases that I know the acceleration was triggered either by a "notice of acceleration" by the lender or the starting of a foreclosure proceeding, this last one also being considered as a voluntary acceleration by the lender.2) Bankruptcy also accelerates the debt ( “Bankruptcy operates as the acceleration of the principal amount of all claims against the debtor” H. Rep. No. 595, 95th Cong., 1st Sess. 352-53 (1977) ).
This quote has been used in many cases involving bonds (for instance: Courts have held that the automatic acceleration that occurs upon filing bankruptcy does not as a matter of law necessarily preclude a lender from recovering prepayment premiums. In re Skyler Ridge, 80 B.R. 500, 507 (Bankr. C.D. Cal. 1987), but I could not find any one related to real estate.
Notice that in this case the acceleration of the debt is not a voluntary decision of the lender.The question: Is a debt discharged in Chapter 7
a trigger of the 6 years statute of limitations to foreclose (assume the property was not surrendered, but abandoned by the trustee
to the owner because the lender refused to sign a reaffirmation
agreement). If it does not triggers it, why not, and is there any case you can refer either on the positive or the negative?
Notice that answers such as "bankruptcy tolls the statute", or "bankruptcy stays the foreclosure" should be irrelevant here. I am asking about starting the clock after discharge and closure of the case. There is neither automatic stay nor tolling after the case has been closed.