(1) Whether the filing of an accurate proof of claim for an unextinguished time-barred debt in a bankruptcy proceeding violates the Fair Debt Collection Practices Act; and (2) whether the Bankruptcy Code, which governs the filing of proofs of claim in bankruptcy, precludes the application of the Fair Debt Collection Practices Act to the filing of an accurate proof of claim for an unextinguished time-barred debt.
Analysis from ABI Resident Scholar Prof. Drew Dawson:
Further analysis from Rochelle's Daily Wire:
- "Solicitor General Supports the Debtor in Midland Funding on FDCPA Violation"
- "Supreme Court to Resolve Circuit Splits on the Fair Debt Collection Practices Act"
By a vote of 5/3, the Supreme Court held on May 15, 2017, that filing a claim barred by the statute of limitations does not violate the federal Fair Debt Collection Practices Act because it is not false, deceptive, or misleading. Justice Stephen G. Breyer wrote the opinion for the majority. Justice Sonia Sotomayor dissented, in an opinion joined by Justices Ruth Bader Ginsburg and Elena Kagan. Justice Neil M. Gorsuch did not participate. The opinion is Midland Funding LLC v. Johnson, 16-348 (Sup. Ct. May 15, 2017).
January 17, 2017
Listen or download the full audio replay of the oral argument.
ABI editor-at-large Bill Rochelle and ABI Resident Scholar Drew Dawson provide a recap of the oral argument: