SYLVIA RODRIGUEZ ELIAS

OCR transcription for search; preserved printed pages are authoritative

Caset05-10140-ESL13 Doc#:89 Filed:09/10/07 Entered:09/13/07 14:45:10 Desc: Main

Oo SS SS DR rH ff

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

INFORMATION

AUTHENTICATED
U.S. GOVERNMENT
GPO

Document Page 1 of 2

UNITED STATES BANKRUPTCY COURT
DISTRICT OF PUERTO RICO

IN RE:

SYLVIA RODRIGUEZ ELIAS - : CASE NO. 05-10140 ESL
Chapter 13
Debtor(s)

OPINION AND ORDER

This case is before the court on debtor’s objection to claim #6 filed by the Treasury
Department of the Commonwealth of Puerto Rico (“Treasury”), alleging that the tax lien recorded
in the Property Registry on March 21, 2001 has expired pursuant to 30 L.P.R.A. § 2469 since more
than six (6) years have elapsed since its recordation. Treasury opposes on the ground that 11 U.S.C.
§ 108(c) tolls the applicable limitations. The court agrees. For the reasons set forth below, the court
denies the objection to claim #6.

The basic and relevant facts are undisputed. Treasury recorded the tax lien in the Property
Registry on March 20, 2001; debtor filed a voluntary petition under Chapter 13 of the Bankruptcy
Code on October 5, 2005; and the automatic stay provisions of 11 U.S.C. § 362(a) remain in effect.

Thus, at he time of filing the petition the six (6) year period had not lapsed.

Section 108(c) extends the time period for commencing or continuing civil actions that are
stayed by sections 362, 922, 1201 or 1301 of the Code. “It provides that if an action on a claim
against the debtor in a court other than a bankruptcy court is stayed due to the bankruptcy case, any
time deadline for commencing and continuing the action is extended to 30 days after notice of
termination of the stay, ifthe deadline would have occurred on an earlier date.” 2 Lawrence P. King,

et al., Collier on Bankruptcy J 108.04 (15" ed. rev’d 2007). “It applies only to civil actions in courts

NN EEE SS-SC”~CCCN A

Casej05-10140-ESL13 Doc#:89 Filed:09/10/07 Entered:09/13/07 14:45:10 Desc: Main
Document Page 2 of 2

1 | onclaims against the debtor”; “[c]ourts have generally held that it does apply to time periods within
2 which a creditor must bring an action to enforce a lien before the lien expires.” Id, at 108-14,
In Gurney v. State of Arizona Department of Revenue, 192 B.R. 529, 539 (9" Cir. BAP
5 1996), the court concluded that pursuant to sections 108(c) and 105(a) the equitable tolling doctrine
6 || may be applied when efforts to collect delinquent taxes were blocked by the automatic stay. The
7 || court stated that there is “a legitimate interest in preventing statutes from becoming a shield for
8 | serious inequity.” Id. At 536. The tolling period “prevents the debtor from filing bankruptcy and the
? waiting until the statute of limitations has run on the creditor’s claim.” 1 Norton Bankruptcy Law

, and Practice 2d, § 16:4, pg. 16-6.

12 In view of the foregoing, debtor’s objection to Treasury’s claim #6 is hereby denied.

13 SO ORDERED.

14 San Juan, Puerto Rico, this 10" day of September, 2007,

15

16

17 RIQUE S. LAMOUTTE

18 U.S. Bankruptcy Judge

19

20

21

22

23

24

25

26

27

28

-2.