PLEASE HELP RE STATUE OF LIMITATIONS
Hottie
to a state college, other than student loans ( where 4 year statue of
limations do not apply)? In other words, I cannot claim the bill from
the state college is stale because it is over 4 years old, and there
for the state college cannot collect on the bill (other than student
loans)???
Glenda
Stuart A. Bronstein
Depends. First of all it is possible that a debt owed to a college
is considered a student loan.
Even if it's not, normally the statute of limitations does not start
to run until you are in default. So if you incurred the debt in 2004
and it required you to pay it in full by 2008, the statute of
limitations doesn't run until 2013.
Barry Gold
Actually, I think the statute starts when he misses a payment. And a
"student loan" (the kind that can't be discharged in BK) applies only if
you got a reduced rate because the Federal Government guaranteed the
loan. The rest of your reasoning is correct.
Stuart A. Bronstein
>> Even if it's not, normally the statute of limitations does not
>> start to run until you are in default. So if you incurred the
>> debt in 2004 and it required you to pay it in full by 2008, the
>> statute of limitations doesn't run until 2013.
>
> Actually, I think the statute starts when he misses a payment.
> And a "student loan" (the kind that can't be discharged in BK)
> applies only if you got a reduced rate because the Federal
> Government guaranteed the loan. The rest of your reasoning is
> correct.
Most notes say that the creditor has the right but not the
obligation accelerate the loan balance. So if a missed payment
starts the statute of limitations clock, it's only with respect to
that individual payment. I have been unable to find any authority
concerning whether the statute runs on individual payments,
however, or commences only when the final payment is to be made.
Also, extensions of time given by the creditor to the debtor extend
the statute of limitations.
For secured loans (not the situation in this case) the statute of
limitations doesn't begin to run in CA until the creditor suffers
some sort of injury. So as long as there is sufficient collateral
to secure the remaining balance, the statute clock does not
commence.
Dan Lanciani
| Also, extensions of time given by the creditor to the debtor extend
| the statute of limitations.
Does the creditor have to grant such an extension contemporaneously with
a payment's due date? If not, can a creditor wait until the statute of
limitations is about to run and then grant an extension to preserve its
right to collect?
Dan Lanciani
ddl@danlan.*com
Stuart A. Bronstein
>| Also, extensions of time given by the creditor to the debtor
>| extend the statute of limitations.
>
> Does the creditor have to grant such an extension
> contemporaneously with a payment's due date? If not, can a
> creditor wait until the statute of limitations is about to run
> and then grant an extension to preserve its right to collect?
I'd imagine that the creditor could grant an extension at any time
before the statute of limitations runs. In some states the debtor
making a payment also extends the statute, while in other states it
doesn't.
Seth
Stuart A. Bronstein <spam...@lexregia.com> wrote:
>>| Also, extensions of time given by the creditor to the debtor
>>| extend the statute of limitations.
>I'd imagine that the creditor could grant an extension at any time
>before the statute of limitations runs.
Wouldn't that tend to void the statute of limitations? Any creditor
would just grant an extension and the statute of limitations would
never expire. (Does the creditor even have to tell the debtor about
the extension?)
Seth
Stuart A. Bronstein
>>I'd imagine that the creditor could grant an extension at any
>>time before the statute of limitations runs.
>
> Wouldn't that tend to void the statute of limitations? Any
> creditor would just grant an extension and the statute of
> limitations would never expire. (Does the creditor even have to
> tell the debtor about the extension?)
If a creditor gives an extension of time, the money is then no longer
owed until the deadline, and the debtor need not pay it until that
time.
Mike
> Also, extensions of time given by the creditor to the debtor extend
> the statute of limitations.
Wouldn't that, more specifically, be "extensions of time granted by the
creditor to the debtor at the debtor's request, or that were accepted by
the debtor, extend the statute of limitations."?
Otherwise, ISTM, the lender could say "hmmmm...this credit card default
is 6 years and 11 months old. We can't get our stuff together and get
this filed in a month. Let's just send the debtor a letter saying 'hey,
we're great guys. We're giving ya a 10 year extension on the time' and
then we can get all our ducks in a row during that time and THEN sue the
poor slob."
Mike
It'd still seem to defeat the whole purpose of the SOL. Just like a DA
that says "hmmmm. My office is so backed up. We can't get to these cases
and get them charged/prosecuted before the SOL and/or speedy trial times
are up. We'll just 'grant' them an extension saying they don't have to
go to trial right away."
Seth
>> Wouldn't that tend to void the statute of limitations? Any
>> creditor would just grant an extension and the statute of
>> limitations would never expire. (Does the creditor even have to
>> tell the debtor about the extension?)
>
>If a creditor gives an extension of time, the money is then no longer
>owed until the deadline, and the debtor need not pay it until that
>time.
So when the statute of limitations has six months left, the creditor
gives the debtor a 30-day extension every 31 days, extending the
deadline for 15 years or so. (The one day per month that it runs is
the day the creditor calls the debtor and tells him to pay. The
debtor knows nothing about any extension, and besides, the debt is
already several years past due.)
That still doesn't make sense to me.
Seth