7th Circ. Weighs Frivolity Of Old Debts In Bankruptcy Court

Law360, Chicago (June 1, 2016, 8:11 PM EDT) -- The Seventh Circuit's chief judge had some pointed questions Wednesday for a couple of debt collectors attempting to collect on obsolete debts in bankruptcy court, casting doubt on the companies’ contention that the practice is not frivolous.

Debt collectors LVNV Funding LLC and eCast Settlement Corp. are asking the appellate court to uphold a series of rulings in lower courts that dismissed Fair Debt Collection Practices Act lawsuits accusing the pair of filing time-barred claims in U.S. bankruptcy courts.

The companies said Wednesday that even if the claims are time-barred, they are still permissible under the Bankruptcy Code because they exist,...

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