Attempt to Collect Debt Discharged in Bankruptcy
This class action brings suit under the Fair Debt Collection Practices Act (FDCPA) in reference to a mortgage serviced by Select Portfolio Servicing, Inc. The complaint alleges that the company tried to collect on a mortgage loan during the time, and after, the borrower was involved in bankruptcy proceedings.
Which debts are discharged in bankruptcy, and which are not? The complaint for this class action alleges that country club fees, even though linked to the person’s community of residence, are discharged—and that Toll Bros., Inc. cannot continue to dun people for them after bankruptcy. The complaint brings suit under the Fair Debt Collection Practices Act (FDCPA).
When individuals or companies are in bankruptcy, the law protects them from attempts to collect on debts that were undertaken before the bankruptcy case. Debt collectors may also not attempt to collect debts that have been settled via a bankruptcy. The complaint for this class action claims that Shellpoint Mortgage Servicing ignored a bankruptcy plan that included a property it believed it was servicing. The complaint claims that Shellpoint violated the Fair Debt Collection Practices Act (FDCPA).
The complaint for this class action brings suit under the federal Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act (WCA), for debt collection letters to the two plaintiffs in this case that the complaint alleges were misleading and deceptive. One concerns a debt that was discharged in bankruptcy; the other concerns a misleading statement about the “Last Activity Date.”