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U.S. Supreme Court agrees to hear debt collection dispute

WASHINGTON Oct 11 The U.S. Supreme Court on Tuesday agreed to decide whether people who have filed for bankruptcy can sue companies that attempted to collect old debt from them that was not required to be paid back because of state statutes of limitations.

The justices will hear an appeal filed by Midland Funding, a subsidiary of Encore Capital Group, which was sued by an Alabama debtor named Aleida Johnson, who entered bankruptcy in 2014. Midland sought payment of $1,879 in debt that Johnson had incurred more than a decade earlier. Alabama law sets a six-year statute of limitations for debt to be collected.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

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