Narrative Opinion Summary
In this case, a bankruptcy trustee objected to the claim filed by MOMA Funding LLC, asserting it was time-barred under Georgia law and should not be allowed in the bankruptcy proceedings. The debtor supported this objection, while MOMA contended that the claim was revived under O.C.G.A. § 9-3-112 due to payments made by the trustee under a confirmed Chapter 13 plan. The court examined whether the trustee's payments constituted an acknowledgment of the debt by the debtor, necessary for the revival of the time-barred claim. The court determined that the payments made by the trustee did not meet the statutory requirements, as they were not voluntary acknowledgments by the debtor. Additionally, the court emphasized that the debtor's estate retains all defenses, including the statute of limitations, which cannot be waived through post-petition conduct. Ultimately, the court upheld the trustee's objection, finding that MOMA's claim could not be revived under Georgia law due to the absence of written acknowledgment by the debtor. The ruling underscored the necessity for clear debtor acknowledgment in reviving time-barred debts within bankruptcy proceedings.
Legal Issues Addressed
Requirements for Debt Acknowledgmentsubscribe to see similar legal issues
Application: Any acknowledgment of a debt for revival purposes must be an unqualified admission in writing, made by the debtor or their authorized agent, and communicated to the creditor.
Reasoning: An acknowledgment of debt must include an unqualified admission of a currently owed debt, not just a prior obligation, as established in *Kelly v. Strouse*.
Revival of Time-Barred Debts under O.C.G.A. § 9-3-112subscribe to see similar legal issues
Application: For a time-barred debt to be revived under Georgia law, the debtor must make a payment on the debt and acknowledge it in writing. The court found the trustee's payments did not satisfy these conditions.
Reasoning: Consequently, payments made by the trustee cannot be considered voluntary acknowledgments necessary for debt revival under Georgia law.
Role of Trustee in Chapter 13 Bankruptcysubscribe to see similar legal issues
Application: Payments made by a trustee on behalf of the debtor do not constitute the debtor's acknowledgment of a debt necessary for revival under state law.
Reasoning: The Court concludes that the trustee, as the representative of the estate and not of the debtor, does not act as the debtor's agent.
Statute of Limitations Defense in Bankruptcysubscribe to see similar legal issues
Application: The debtor's estate retains the statute of limitations defense, which cannot be waived by post-petition actions or payments made by the trustee.
Reasoning: Section 558 protects the debtor’s estate by maintaining all defenses, including the statute of limitations, which cannot be waived through post-petition conduct.
Time-Barred Claims under Bankruptcy Codesubscribe to see similar legal issues
Application: The court must disallow a claim that is unenforceable under applicable law due to the expiration of the statute of limitations, unless a revival statute applies.
Reasoning: If an objection is raised, the court disallows the claim if it is unenforceable under applicable law, as outlined in § 502(b)(1).