Does the statute of limitations apply to a creditor who is unable to claim a nondischargeability action for fraud, breach of fiduciary duty and willful and malicious injury?

federal, United States of America

The following excerpt is from Wallace v. Thomas & Wong Gen. Contractors, Inc. (In re Wallace), Adv. No. 2:14-ap-00332-PS, BAP No. AZ-15-1319-LJuF (B.A.P. 9th Cir. 2016):

In Banks v. Gill Distribution Centers, Inc. (In re Banks), 263 F.3d 862, 868 (9th Cir. 2001), the court held that where a creditor filed a timely state court claim for breach of a settlement agreement - even where the claim had not been reduced to judgment - the creditor was not barred from asserting in the bankruptcy court a timely nondischargeability action for fraud,

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breach of fiduciary duty, and willful and malicious injury, even though the state statutes of limitations had expired. See also Lee-Benner v. Gergely (In re Gergely), 110 F.3d 1448, 1454 (9th Cir. 1997) ("The state limitations period for fraud actions is irrelevant to the dischargeability of an established debt.")

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