commentary by George Azar | Jan 7, 2017

Johnson v. Midland Funding L.L.C.

11th Circuit Federal Court of Appeals

05/24/2016 case no. 15-11240
D.C. Docket No. 1:14-cv-00324-WS-M

If you are not familiar with this case you need to read the opinion, and be up to date on the dangers of filing a stale claim or a claim on which the statute of limitations has run out. This case was combined with Brock v. Resurgent Capital Services LP..

This is a very important case for attorneys who are representing creditors in Bankruptcy Court. This opinion discusses the question of liability for debt collectors who file claims which are barred by the statute of limitations or otherwise considered stale by the court.

The court decides that filing a claim barred by statute of limitations or claim that the court considered stale would violate the Fair Debt Collection Practices Act (FDCPA).

The court explains how FDCPA and the bankruptcy code are consistent and not in conflict. Every attorney representing creditors, particularly with claims in the Bankruptcy Court, needs to read this opinion and be sure they understand the Court's opinion. If they are considering filing a claim which is barred by the statute of limitations or otherwise considered stale they need to be careful.

The 11th Circuit opinion appears to conflict with one or more other federal circuits and there is a good possibility this issue will finally be decided by the Supreme Court of the United States. If you not familiar with this case you should read it at your earliest convenience and be familiar with the law.