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Acknowledgment of Debt in Bankruptcy Proceeding Restarted Statute of Limitations 

The First Department, in a full-fledged opinion by Justice Roman, determined the defendant’s acknowledgment of a debt in his bankruptcy petition restarted the 20 statute of limitations for the enforcement of a judgment:

Contrary to defendant’s contention, enforcement of the judgment issued against him is not barred by CPLR 211(b). While [plaintiff] first sought to enforce the judgment in 2011, more than 20 years after the judgment could have first been enforced, defendant acknowledged the judgment in 2005 within his bankruptcy petition, thereby recommencing the statute of limitations from that date. Based on the 2005 acknowledgment, the statute of limitations to enforce the judgment ran anew in 2005 and [plaintiff] has until 2025 to enforce the judgment … . Since a debtor sufficiently acknowledges a debt pursuant to a judgment simply by admitting to the creditor in writing that a debt is owed, here, defendant’s listing of the judgment within his bankruptcy petition constitutes such an admission and is thus, an acknowledgment under the statute. Moreover, insofar as an acknowledgment need not specify the amount nor the character of the debt owed …, defendant’s failure to list the correct amount of the judgment or the court in which it was obtained does not constitute a shortcoming which avails defendant. First NY Bank for Bus. v Alexander, 2013 NY Slip Op 01796, 4800/90, 9377, 1st Dept. 3-19-13

 

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