Court Holds Creditor Can Be Liable For Pursuing Stale Credit Card Claims In Bankruptcy

In In re Rose I. Avalos, 15 A 00091 (Bankr. N.D. Ill. June 12, 2015), Judge Schmetterer reasoned that a creditor could be found to have violated the Federal Debt Collection Practices Act by filing a proof of claim in a chapter 13 to recover credit card debt that was unenforceable due to the expiration of the five-year statute of limitations. Judge Schmetterer noted there was a difference of opinion within the Chicago Bankruptcy Court, but reasoned that filing a claim for an unenforceable debt could be deemed a false or misleading practice actionable under the Fair Debt Collection Practices Act.
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