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Bankruptcy Legislation Litigation

POCs and the FDCPA: A License to File

Buyers and servicers of "stale," or time-barred, debt have been watching the bankruptcy and appellate courts closely of late, as court after court has ruled on whether a key component of their recovery strategy -- seeking payment related to such time-barred debts by filing proofs of claim in bankruptcy --€” violates the Fair Debt Collections Practices Act (FDCPA).

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Buyers and servicers of “stale,” or time-barred, debt have been watching the bankruptcy and appellate courts closely of late, as court after court has ruled on whether a key component of their recovery strategy – seeking payment related to such time-barred debts by filing proofs of claim in bankruptcy –€” violates the Fair Debt Collections Practices Act (FDCPA).

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