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Debt Collector’s Proof of Claim Raises FDCPA Liability

The 11th Circuit Court of Appeals recently held that a debt collector who files a proof of claim in a bankruptcy proceeding violates the Fair Debt Collection Practices Act (“FDCPA”) when the claim is for a time barred debt.  The case is  Johnson v. Midland Funding.When filing bankruptcy, the bankruptcy code permits a creditor who wants to have a claim for repayment from the debtor to file what is called a proof of claim.  This is an assertion that the debtor owes the creditor money.  However, an issue arises when the creditor is ...