May 15, 2017 / 2:20 PM / 3 months ago

U.S. top court rules in favor of debt collector in bankruptcy dispute

WASHINGTON, May 15 (Reuters) - The U.S. Supreme Court on Monday handed a victory to debt collectors, ruling that people who have filed for bankruptcy cannot sue companies that tried to recoup old debt that was not required to be paid back under state statutes of limitations.

The justices, in a 5-3 decision, ruled in favor of Midland Funding, a subsidiary of Encore Capital Group Inc, which was sued by an Alabama debtor named Aleida Johnson who entered bankruptcy in 2014. The court's newest justice, Neil Gorsuch, did not participate in the ruling.

Reporting by Lawrence Hurley; Editing by Will Dunham

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