News & Analysis as of

Debt Collection Personal Liability

Troutman Amin LLP

TCPA DEBT CAN’T BE DISCHARGED IN BK?: Court Rejects Diana Mey’s Effort to Deem TCPA Judgment Non-Dischargeable In Bankruptcy–But...

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One of the most unfair rules in American jurisprudence is the one holding individuals personally liable under the TCPA for actions they take as part of their employment. In almost every setting in the law if you do something...more

Orrick, Herrington & Sutcliffe LLP

CFPB requests $43M in restitution and fees from Biden-era enforcement case

On March 13, in a response to a court’s request for additional briefing, the CFPB requested a federal judge to levy $43 million in fines and restitution against the owner of a debt-relief company. The court previously issued...more

Sheppard Mullin Richter & Hampton LLP

[Webinar] So You Want to Be a Landlord? Rise in Residential Housing Class Actions - September 14th, 10:00 am - 11:00 am PT

This presentation will cover the recent spate of class actions being filed against landlords and property managers relating to tenant protection statutes, which include challenges to rent increases, late fees in residential...more

Troutman Pepper Locke

Colo. Bankruptcy Ruling Clarifies Debt Collection Rules

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On April 24, the Colorado Supreme Court issued its highly anticipated decision in U.S. Bank National Association v. Silvernagel. The decision made Colorado the latest state to recognize that a borrower’s bankruptcy...more

Miller Nash LLP

Court Grants Garnishment of Unlawful Distributions and Transfers to LLC Members

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Garnishment is a tool used by judgment creditors to collect on a judgment owed by the debtor-defendant. Property subject to garnishment includes monetary obligations owed by a third party to the debtor-defendant. In a recent...more

Patterson Belknap Webb & Tyler LLP

Appeals Court Rules That a Discharge Injunction Bars a Fraudulent Transfer Claim Based on a Non-Dischargeable Debt

A discharge of debt in bankruptcy “operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of...more

McGlinchey Stafford

Has the FDCPA’s Scope Been Expanded?

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What debts are subject to the protections of the FDCPA, the Fair Debt Collection Practices Act (15 U.S.C. §1692)? One would think that funds received through a government program providing hurricane relief would not be, but...more

Patton Sullivan Brodehl LLP

“Reverse Veil Piercing” to Reach an LLC’s Assets

“Piercing the corporate veil” — also referred to as “alter ego” liability — is a familiar concept under California law. Ordinarily, a corporation or other entity (such as an LLC) is considered a legal entity separate and...more

Ballard Spahr LLP

Second Circuit upholds personal liability of individual owner for payday debt collection companies’ FTCA and FDCPA violations

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The Second Circuit recently upheld a decision finding two individual co-owners personally liable for nearly $11 million for their companies’ violations of the Federal Trade Commission Act (FTCA) and Fair Debt Collection...more

Bradley Arant Boult Cummings LLP

Part II: Navigating the Maze of Servicing Discharged Debt

Welcome to Part II of our series on the servicing of discharged mortgage debt (catch up on Part I). This part will discuss communications to discharged borrowers and evaluate various disclaimers that can be utilized. The...more

Bradley Arant Boult Cummings LLP

Part I: Navigating the Maze of Servicing Discharged Debt

Mortgage servicers are plagued by their nebulous relationships with the borrowers who discharge their personal liability in bankruptcy. Issues arise when the borrower whose debt has been discharged continues to engage with...more

Mintz - Bankruptcy & Restructuring Viewpoints

Can the Corporate Veil be Pierced Against a Former Shareholder?

A recent opinion issued by the United States District Court for the Northern District of Illinois reminds us that corporate veil-piercing liability is not exclusive to shareholders. Anyone who is in control of and misuses the...more

Gray Reed

Partner Liability: Out of the Woods?

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Debbett Runnup Partnership, a Texas general partnership, was sued by Widgets R Us in 2010 for failing to pay Widgets R Us invoices. Judgment was granted to Widgets in 2012 against Debbett Runnup for $300,000. After chasing...more

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