This is pretty heady question I am told -taking an artful experienced procedural expert etc. to address.

Relevant to this question is the bankruptcy (automatic stay) tolling of time when a bankruptcy is active and whether that does or does not apply to the facts of this particular situation as to does the automatic stay of bankruptcy stop the statue of limitation clock (6 year clock in Washington State) in tolling the time to seek a claim against another party. Here the the claim is to void a fraudulent quit claim deed of property worth 1.5 million dollars from the debtor as that relates to Washington's 6 year statute of limitations.

The Facts: a debtor in a chapter 13 that which was active 5 years— the chapter 13 was finally closed recently--few days ago. The debtor owned real property (worth over 1.5 million dollars) that was fraudulent taken from the debtor using a forged quit claim deed (he was aware of the illegal transfer (forged quit claim deed) this happened 7 years ago -2 (two) years before he filed for chapter 13 bankruptcy.

Facts that form the claim he wants to pursue is formed of fact that show the taking of property that was in his name by another party that used a forged quit claim deed (forged the debtor's signature on a quit claim deed) and then sold the property to other parties. The debtor knew this happened and the theft (forged quit claim deed) happened over 7 years ago.

Question: does the bankruptcy tolling (stay order) of time of bankruptcy apply in stopping the state’s 6-year statute of limitation clock to bring a claim against another party> i.e. does the stay order (tolling of time in bankruptcy) extend the 6 year statute of limitations clock?

In other words, will a complaint by the debtor (as he will be a plaintiff in superior court of Washington) to void out the quit claim deed be dismissed because he failed to file within the 6 year clock? (facts of the claim are the property was illegal taken using a forged document) So, will that claims be dismissed because the debtor (now plaintiff) waited over 6 years to bring the complaint?

Will the tolling of bankruptcy help the debtor to avoid dismissal of a claim?

Note, (maybe relevant) the debtor listed the subject asset in his chapter 13 plan and gave notice to the party that forged the quit claim deed (that party didn't appear and was deemed in default under bankruptcy procedures); the debtor obtain a ruling in his favor in the bankruptcy court; however bankruptcy courts are courts of limited jurisdiction so the question rests also of how much legal weight a default from bankruptcy court carries in a general proceedings court (superior court is a general proceedings court); this is part of the question too(?)

Can the debtor (now out of bankruptcy) be stop from bring a claim to void the quit claim deed because the debtor waited too long?

Does the 5 of the years the debtor was in bankruptcy apply to extend the state’s statute of limitations? If so, what case law or rule applies to show the time was extended. The party who forged the quit title is not a creditor as that is defined by case law and bankruptcy rules. Also, the debtor knew the forged quit claim deed existed. As that relates to fraud as generally not know -as a principle one uses to extend statute of limitations – in other words, debtor can’t use that because he knew of the forge quit claim deed.

  • 1
    Have you used "debtor" in a few places where you mean "creditor?"
    – feetwet
    Jul 10 '16 at 21:12

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