Skip to main content
Home

Main navigation

  • NC Bankruptcy Cases
    • Eastern District
    • Middle District
    • Western District
  • NC Courts
    • 4th Circuit Court of Appeals
    • NC Court of Appeals
    • NC Business Court
    • NC Supreme Court Cases
  • Federal Cases
  • Law Reviews & Studies
    • Book Reviews
  • NC Legislative History
  • Student Loan Debt
User account menu
  • Log in

Breadcrumb

  1. Home
  2. Blogs

Bankr. M.D.N.C.: In re Skwara- Disallowance of Private Student Loans due to Statute of Limitations

Profile picture for user Ed Boltz
By Ed Boltz, 11 December, 2021

Summary:

A borrower had two private student loans with Navient,  with balances totaling almost $120,000.  He had not made any payments on those loans since at least  July 1, 2008, based on the date when Navient capitalized interest on this debt,  but had been in two previous Chapter 13 cases, which had tolled the Statute of Limitations from running.  
Upon consulting with Ed Boltz about these student loans (as well as his federal student loans which, while not subject to any Statute of Limitations, but may be discharged through a forthcoming Total & Permanent Discharge application,  a third  Chapter 13 case was filed once the three year ( or 1096 day) Statute of Limitations had expired.  Fortunately, in North Carolina,  following  Person Earth Movers, Inc. v. Buckland, 136 N.C. App. 658 (N.C. Ct. App. 2000), while bankruptcy does toll the Statute of Limitations Trustee disbursements don't reset the Statute of Limitations.

The history of the Debtor’s payment periods and tolling due to prior bankruptcies was as following:

EventDateStatute of Limitations Time (3 years or 1096 days)
Loan Date7/16/04-
Capitalized Interest Date7/1/08-
09-82236 Filed12/15/09532
09-82236 Discharged4/8/13-
13-81601 § 108(c)(2) Date5/9/13-
13-81601 Filed12/23/13 228
13-81601 Discharged5/21/19 -
13-81601 § 108(c)(2) Date6/20/19 -
20-80404 Filed8/31/20 439
  Total:1199

Based on this and pursuant to N.C.G.S. § 1-52(1), the claims were  disallowed as exceeding the Statute of Limitations at .  See In re Kittrell,  2012 Bankr. LEXIS 633 (Bankr. M.D.N.C. Feb. 3, 2012).

Commentary:

This case was filed as a Chapter 13, because, unlike a no asset Chapter 7, that allowed both for the filing Proofs of Claim and the objections to those. (The debtor could actually, but didn't need to in this case, file Proofs of Claim for the creditor if it had failed to.)

Now with these claims being disallowed, explicitly due for the nonbankruptcy dependent Statute of Limitations, any future attempt to collect these by Navient or any subsequent debt collector or debt buyer, will likely face claims for violation of the FDCPA or North Carolina's UDTPA, with the question of the Statute of Limitations being already decided by the bankruptcy court and subject to res judicata. While not necessarily a discharge, this result is largely indistinguishable.

For a copy of the objection, please see:

Skwara-Objection-for-Navient-Claim-1Download

For a copy of the order disallowing the claim, please see:

Skwara-Order-for-Navient-ClaimDownload

Blog comments

Blog tags
student loans
statute of limitations
Category
North Carolina Bankruptcy Cases
Middle District

About Us

Mountain View The purpose of the NC Bankruptcy Expert blog is to provide legal professionals with a consolidated resource for updates and case summaries about issues and decisions affecting bankruptcy, foreclosures, mortgages, and debt collection.

 
Lawyer Edward Boltz | Top Attorney Chapter 7

NC Bankruptcy Expert FREE Consultation

We Offer A Free Bankruptcy Consultation which has helped over 70,000 North Carolina families. We serve the entire state of North Carolina.

Proud Member of:












Categories

  • 4th Circuit Court of Appeals
  • Book Reviews
  • District Courts
  • Eastern District
  • Ed Boltz: Bankruptcy Attorney
  • Federal Cases
  • Forms
  • Home
  • Law Reviews & Studies
  • Middle District
  • Mortgage Modification Mediation Documents
  • NC Business Court
  • NC Court of Appeals
  • NC Courts
  • NC Supreme Court Cases
  • News
  • North Carolina Bankruptcy Cases
  • North Carolina District Court Cases
  • North Carolina Exemptions Legislative History
  • Student Loan Debt
  • Student Loan Options and Chapter 13 Bankruptcy
  • Western District
RSS feed
v. 1.2.2, © 2013-2025 ncbankruptcyexpert.com, all rights reserved. Follow @edboltz