Voting 5-3, the U.S. Supreme Court has ruled that debt collectors can use bankruptcy proceedings as a means to collect old debts, where the statute of limitations has expired. The court ruled that this was not a violation of the U.S. Fair Debt Collection Practices Act.
Consumer advocates accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in hopes that some debtors would not object.
Justice Sonia Sotomayor filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Elena Kagan joined. “Professional debt collectors have built a business out of buying stale debt, filing claims in bankruptcy proceedings to collect it, and hoping that no one notices that the debt is too old to be enforced by the courts. Debt collectors do not file these claims in good faith; they file them hoping and expecting that the bankruptcy system will fail,” Sotomayor wrote. This practice is both “unfair” and “unconscionable,” she added.
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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
The Federal Trade Commission is giving debt collection agencies a dose of their own medicine in terms of harassment. The FTC is taking strong steps forward to hold these agencies responsible for harassing debtors. In 2010, a reported 140,036 claims of harassment were filed, which was not only the largest in history, but a 20,000 increase from the previous year. The collection agencies are not only in trouble with the FTC for harassment, but also for failure to notify the debtor of their outstanding debt in writing and also for “misinterpreting” the debt.
Many cases such as the one filed by an 85 year-old in Oregon are surfacing and becoming national news. Anne Sessions is suing Wells Fargo Bank for harassment after she was falsely turned in by a debt collector for being in danger of committing suicide. After Sessions was taken into custody by the police and sent to a mental health institute, she was observed and later released due to the fact she was found to be of no danger to herself or anyone else.
Sessions is now suing in hopes to receive compensation for her $1,055 medical bill from the mental health facility. She is also suing for $250,000 in punitive damages. Sessions claims that she made the remark to the debt collector that some people must want to commit suicide from the harassment of the company, and later was drilled with questions by the debt collector such as, “If you did commit suicide, how would you do it?”
To read more on this story visit: http://www.bankruptcyhome.com/bankruptcyblog/2012/02/13/harassment-goes-too-far-in-debt-collection-efforts/
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.