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Attorney Facing FDCPA Class Action for Allegedly Attempting to Collect on Judgments for Bankrupt Creditor

Account Recovery

A collection attorney in New York is facing a class-action lawsuit for allegedly violating the Fair Debt Collection Practices Act and state law when attempting to collect on judgments owed to a bankrupt for-profit university. The background: Technical Career Institutes, Inc. (TCI), Learn more.

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Obtaining a Judgment Against a Client Who Kept Insurance Funds May Prevent the Debt From Being Discharged Following Bankruptcy

FFGN COLLECT NY

What happens if a client who kept insurance funds proceeds later files for bankruptcy? Will a bankruptcy court allow the debtor to keep monies intended for you? The bankruptcy court refused to grant a discharge to a debtor who failed to turn over insurance checks to the provider. The debtor later went on to file for bankruptcy.

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New Law in Arizona Changes Homestead Exemption for Judgment Creditors

Account Recovery

A bill has been signed into law in Arizona that raises the homestead exemption on judgments to $250,000 from $150,000, but has “gutted the protections” that were previously included in the state, according to one bankruptcy attorney, because the law now allows any judgment to be attached to a home and allows judgments to be … The (..)

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Judge Grants MTD in FDCPA Case Over Attempt To Collect on Discharged Debt

Account Recovery

A District Court judge in California has granted a defendant’s motion to dismiss after it was accused of violating the Fair Debt Collection Practices Act and the Rosenthal Fair Debt Collection Practices Act by attempting to collect on a debt that had been discharged in bankruptcy.

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Daily Digest – October 26. Judge Denies Defendant’s Motion in FDCPA BK Case; Creditor Fined $10k For Collecting Debts in Different Name

Account Recovery

Judge Denies Defendant’s Motion in FDCPA BK Case; Creditor Fined $10k For Collecting Debts in Different Name appeared first on AccountsRecovery.net.

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Florida Bankruptcy Court Sanctions Debt Buyer for Seeking to Collect Debt that Consumer Failed to Schedule in Bankruptcy Case

Troutman Sanders

The debt purchaser in In re McIntosh argued that because it was enforcing a debt that was not listed correctly on the debtor’s bankruptcy schedules, it was entitled to assume the debt had not been discharged. As background, in 2002, the debtor and her then-spouse jointly filed a “no asset” Chapter 7 bankruptcy petition.

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Does Bankruptcy Clear Lawsuit Debt?

Sawin & Shea

Both being sued by a creditor and bankruptcy can feel like scary situations, but rest assured, filing for bankruptcy can help. Once bankruptcy is filed, whether it’s under Chapter 7 or Chapter 13 , an automatic stay prevents debt collectors from taking further legal action. Does bankruptcy clear lawsuit debt?