Kentucky residents who are struggling to pay their bills and keep their heads above water financially may be aware that the activities of debt collectors can sometimes border on harassment, but they may not know that these companies could have bought their old debts for as little as 2 or 3 cents on the dollar. Debt collection is now a multibillion dollar industry in the United States, and the submission of thousands of proofs of claim for time-barred debts each year by debt collection companies has placed additional pressures on the nation's already strained bankruptcy courts.

Each state sets limits on how long debt collectors have to secure payment, and debts are considered time-barred once these periods have passed. However, companies that buy thousands of old debts at a time often submit proofs of claim in bankruptcy cases regardless of these limits, and it is left up to bankruptcy courts and attorneys to check the legitimacy of each one.