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In 2012, the primary borrower filed for Chapter13bankruptcy protection, listing the defendant trusts as creditors for the student loans. The bankruptcy plan was confirmed, and the trusts filed proofs of claims which were not objected to by the plaintiffs.
Bankruptcy can also stop or delay a home or mortgage foreclosure, stop collection actions, stop garnishments and lawsuits. What Do the Various Kinds of Bankruptcy Entail? There are many intricacies that set Chapter 7 and Chapter13Bankruptcy apart. What does each one mean?
The Eleventh Circuit Court of Appeals held last year to broaden the scope of the ‘least sophisticated’ standard when considering FDCPA (FairDebtCollection Practices Act) violations. This change can have far-ranging effects for debt buyers and debt collectors alike.
Johnson in the Lower Courts Aleida Johnson filed her Chapter13bankruptcy petition in 2014. Midland Funding, LLC, a debt buyer, filed a proof of claim which disclosed on its face that the claim was barred by the applicable statute of limitations, listing the date of last transaction as May 2003.
Court of Appeals for the Ninth Circuit recently reversed an award of summary judgment in favor of a defendant debt collector against claims that it violated the federal FairDebtCollection Practices Act (FDCPA) by attempting to collect a debt that was discharged in bankruptcy and no longer owed.
And debt buyers often lack the necessary documentation to prove either that they have the right to pursue the claim or that the amount owed is accurate. If a debt buyer or collection agency has violated a consumer protection statute such as the FairDebtCollection Practices Act (FDCPA)–and they often do–that provides leverage to fight back.
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