If bankruptcy is filed by the owner, the year limit shall be extended for each day foreclosure was precluded by bankruptcy filing by how many years?

• A. 2 years
• B. 3 years
• C. 5 years
• D. 10 years

Answer: (C)

When a owner files for bankruptcy, the foreclosure process is halted by an automatic stay, and the law protects the creditor’s time to act by tolling the period for filing or pursuing foreclosure. In this rule, that tolling is a fixed amount added for every day the foreclosure was precluded due to the bankruptcy. The amount added per day is five years. So the total extension to the year limit grows by five years for each day the bankruptcy stay prevented foreclosure. For instance, a one-day stay would extend the limit by five years, a two-day stay by ten years, and so on. The other option values don’t reflect this per-day multiplier, so they don’t fit the rule.