What is the Statute of Limitations on Private Student Loans
My question involves bankruptcy in the state of: Arizona.
I filed chapter 7 in the state of Arizona in 2008. Some of the debt I had at the time was private student loans. I filed an adversary proceeding to discharge the debt because some of the loans were not true student loans. The adversary took several months to conclude, but in the end some of the "student" loans were discharged based on the argument that the loans did not meet the definition of a qualified student loan. A few of the private student loans survived the adversary proceeding the ended in 2009.
Now, when did the state of limitations begin on this debt? Is it the date I filed bankruptcy or when the case ended or some other time? I have not heard from the creditor since the bky until recently when a creditor mailed a letter asking for payment.
Re: When Does the Statute of Limitations Begin After a Private Student Loan Survives
If you are referring to the statute of limitations for filing a lawsuit and these are definitely private student loans not backed by the federal government, then the AZ SOL for debts based on a written contract is 6 years from the date of default.
See ARS 12-548 at:
http://www.azleg.state.az.us/Arizona...s.asp?Title=12
The date of default is generally the date of the first past due payment that never got paid.
As far as I can tell, the SOL does not stop running during bankruptcy (same link).
So, if your default date is prior to July 2 2008 and the creditor has not filed suit as of yesterday, you are in the clear.
Keep in mind, however, that if you do get sued you would have to file a response and raise the SOL as an affirmative defense. You can't just ignore a lawsuit.