Credit: Lane V. Erickson/Adobe Stock Bankruptcy Code Does Not Preempt State Creditor-Harassment Claims, 4th Circuit Rules
Divided appeals court says state claims are in keeping with federal law's goal of giving debtors "a fresh start."
August 18, 2023 at 03:49 PM
4 minute read
The U.S. Bankruptcy Code does not preempt a bankrupt debtor's state-law claims of harassment by a creditor trying to collect a discharged debt, despite a code provision enabling harassing creditors to be held in contempt by the bankruptcy court, a divided federal appeals court ruled Friday.
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