Lawyers Can Violate FDCPA by Making Factually Inaccurate Allegations in Bankruptcy Pleadings

Judge Castillo’s case involved a law firm that filed a motion to modify the automatic stay on behalf of a condominium association. The motion alleged that the debtors had not paid condominium assessments after being in chapter 13 for a year. The motion also alleged that the unpaid post-petition assessments were about $750.  Three months later, the debtors filed suit in district court alleging violations of the FDCPA. They contended the motion was factually incorrect because they had only been in chapter 13 for six months, not a year, when the firm filed the lift-stay motion. To show that the arrears at the time were only $550, they attached a letter from the law firm alleging arrears in the lower amount.    Read the article…………


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