E.D.N.Y.: No Standing for Consumer to Bring FDCPA Claim Because It Wasn’t Properly Disclosed in Bankruptcy Petition

It's a tale as old as time for those in the industry. A consumer files a bankruptcy petition without properly listing FDCPA claims, only to later file such bankruptcy-covered claims (often to their attorney's financial benefit). Some relief from this scheme came in the Eastern District of New York (E.D.N.Y.) in the case Nunez v. Mercantile Adjustment Bureau, LLC, No. 19-CV-02962 (May 13, 2020)

What Happened?

The case involves two different consumer plaintiffs who received an almost identical collection letter from defendant. After the letters were received, one of the consumers filed for bankruptcy and obtained a discharge of their debts. On the bankruptcy petition, the consumer scheduled only one FDCPA claim, alleging it valued at $1,000 for statutory damages. This claim was exempted. Despite this, the consumer and her husband went on to file five different FDCPA lawsuits that should have been scheduled. 

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