Justices Stem Tide Of Suits Against Stale Debt Collectors

By Alex Wolf (May 16, 2017, 4:42 PM EDT) -- In finding that an attempt to collect on obviously time-barred debt in bankruptcy is not grounds for punishment under consumer protection laws, the U.S. Supreme Court has cleared up confusion around filing proofs of claim in Chapter 13 that have plagued the credit and collection industry, experts say.

Debt collectors were thrown for a loop when the Eleventh Circuit ruled in 2014 that they can be sued under the Fair Debt Collection Practices Act for pursuing stale debt, or debt that is barred by an applicable statute of limitation, against a bankrupt person.

That ruling, in Crawford v. LVNV Funding LLC...

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