11th Circ. Finds Collectors At Risk In Pursuing Old Debts

Law360, New York (May 24, 2016, 10:47 PM EDT) -- Debt collectors are not free from liability under the Fair Debt Collection Practices Act if they try to make claims against bankrupt debtors after the statute of limitations has run out, the Eleventh Circuit ruled Tuesday.

The appeals court reversed and remanded the decision of a district judge who had said that the Fair Debt Collection Practices Act was in direct conflict with the Bankruptcy Code over the matter because the Bankruptcy Code allows all creditors debt to file claims and the collection practices act puts limits on some creditor behavior.

The ruling came in the cases of Aleida Johnson, who...

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