High Court Wrestles With Clash Over Stale Debt In Bankruptcy

Law360, New York (January 17, 2017, 10:15 PM EST) -- The U.S. Supreme Court on Tuesday pressed a professional debt collector to explain why it should not face legal liability if it pursues stale debt in bankruptcy proceedings, and questioned to what extent the U.S. Bankruptcy Code may preclude debtors from filing consumer protection law reprisals.

The court heard oral arguments in a high court appeal brought by Midland Funding LLC, one of the nation's largest purchasers of unpaid debt, challenging an Eleventh Circuit decision that found Midland potentially liable under the Fair Debt Collection Practices Act for attempting to collect in bankruptcy on decade-old credit card debt that had become...

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