The owner of World Law Debt accused the Consumer Financial Protection Bureau of violating U.S. bankruptcy laws when agency officials took the company's property on Aug. 20 during a legal battle over the debt-settlement firm's services, Dow Jones Daily Bankruptcy Review reported today. In court papers, World Law Debt owner Derin Scott said that agency officials who took steps to shut down the debt-settlement firm, which filed for bankruptcy in February, did so with "total disregard of the procedures and safeguards of the bankruptcy." Firms under bankruptcy protection are immune from property seizures, unless a federal judge grants an exception. Scott's accusations were raised in a federal lawsuit that the consumer agency filed against the Austin, Texas-based firm on Aug. 17.
