Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free

SCOTUS hears arguments in debt collector case

Debt collection companies in Ohio and across the country are part of a growing industry that is already worth about $13.7 billion each year. These companies buy tranches of debt for as little as 1 or 2 cents on the dollar, and they then hound consumers for payment using tactics that sometimes verge on harassment. Companies in this sector sometimes ignore the provisions of consumer protection laws, and they also frequently submit proofs of claim for what are known as time-barred debts in personal bankruptcy cases.

Each state has a statute of limitations in place for debts, but debt collectors often ignore these rules and submit claims for debts that are no longer eligible for payment. When debt collection companies do this, they place an additional and unnecessary burden on the bankruptcy court system.

The courts have not ruled consistently when debtors have filed lawsuits claiming that this practice violates both the Fair Debt Collection Practices Act and the nation's bankruptcy laws. Oral arguments were made before the U.S. Supreme Court on Jan. 17 in a case involving a Chapter 13 bankruptcy and time-barred proofs of claim. The office of the U.S. Solicitor General filed an amicus brief in support of the debtor involved.

While debt collectors routinely violate many regulations, they generally cease contact when debtors file personal bankruptcy petitions. Putting an end to creditor abuse is one of the most immediate benefits of a personal bankruptcy, and attorneys with experience in this area may point out that filing a Chapter 7 or Chapter 13 petition also gives those struggling with unmanageable debt the opportunity to have a fresh start. Attorneys could also answer questions about issues like Chapter 7 means tests, holding onto assets like houses or cars and rebuilding credit ratings after a bankruptcy has been discharged.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions