Florida residents who are in debt may be interested in an impending decision of the U.S. Supreme Court regarding collection actions against time-barred obligations. Specifically, it will determine whether the act of filing a proof of claim in a bankruptcy case for a debt that is beyond the statute of limitations qualifies as a violation of the Fair Debt Collection Practices Act.
There are many companies that acquire charged-off consumer debt from the original creditors. If the debtor files for a Chapter 13 bankruptcy that pay pennies on the dollar, the debt collector may earn a profit. The claims that are filed in Chapter 13 cases may not be appropriately scrutinized which results in many of the claims being processed and receiving a portion of the bankruptcy settlement.