(Bankr. W.D. Ky., Issued June 11, 2014)
Judge Lloyd denies the debtor’s motion to dismiss the adversary proceeding, in which the title company sought a judgment that its claim on a promissory note was non-dischargeable under Section 523 of the Bankruptcy Code. The debtor argued the complaint was time barred based on Kentucky’s five and ten-year limitations periods for claims based on fraud. The Court held that, while the debtor’s signature did not appear on the promissory note, the debtor’s signature on the mortgage—which contained a covenant that the debtor would pay the amount owed under the note—was sufficient to establish a claim upon a written agreement, which has a fifteen-year limitations period. The nondischargeability claim was also filed timely under the applicable bankruptcy rules. Opinion below.