Supreme Court: Proofs Of Claim For Time-Barred Debt Don't Violate The Fair Debt Collection Practices Act

LexisNexis (July 6, 2017, 2:46 PM EDT) -- On May 15, 2017, the U.S. Supreme Court issued its much-anticipated opinion in Midland Funding, LLC v. Johnson, 2017 U.S. LEXIS 2949 (U.S. May 15, 2017).  At issue was whether filing a time-barred proof of claim in bankruptcy violated the federal Fair Debt Collection Practices Act.  When we previewed the Midland Funding case in the November 2016 issue of this newsletter, we noted that the Court could potentially reach several results on this issue, including a ruling that the Bankruptcy Code completely preempted the FDCPA, a ruling that filing a time-barred proof of claim was an FDCPA violation, or a ruling that there was nothing inherently misleading about an untimely claim....