Supreme Court Backs Bids to Collect Outdated Debt in Bankruptcy
- Debt collectors can seek repayment after suit deadline expires
- Breyer joins court’s conservatives in majority of 5-3 decision
The U.S. Supreme Court building stands in Washington.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
A divided U.S. Supreme Court ruled that debt collectors can use bankruptcy proceedings to try to collect liabilities that are so old the statute of limitations has expired.
Voting 5-3, the court said companies don’t violate the U.S. Fair Debt Collection Practices Act when they file bankruptcy claims on that type of years-old debt. Justice Stephen Breyer joined the court’s conservative wing in the majority.