A fundamental principle of bankruptcy law provides that similarly situated creditors are to be treated similarly. That concept seems straightforward, but applying it in today’s complex corporate restructuring environment is not, as was illustrated in the reorganization of Peabody Energy Corporation (“Peabody” or “the Company”).

Upon receiving notice of a debtor’s bankruptcy case, the prudent debt collector typically files a proof of claim, in the hope of receiving some distribution from the debtor’s bankruptcy estate. Absent a fraudulent claim by the debt collector, the Bankruptcy Code specifically provides for the filing of claims against the debtor’s estate. So how could a debt collector be sued for doing what the Code allows? It could happen if debts a collector actually holds are barred from enforcement under a state statute of limitations.