STATUTE OF LIMITATIONS – EFFECT OF BANKRUPTCY

Bankruptcy filing suspends the running of any statute of limitations (both state and federal).

Bankruptcy Code (11 U.S.C.) sec. 108(c) provides:

Except as provided in section 524 of this title, 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, 922, 1201, or 1301 of this title, as the case may be, with respect to such claim.