Regardless if your finances are in top condition or you’ve recently filed bankruptcy, the last thing you want to deal with is a previous debt suddenly coming back to haunt you. This is what’s known as a zombie debt, and it can cause you a great deal of unnecessary stress if you don’t know how to protect yourself from those attempting to collect on it. Below is some insight into this type of debt collection and what you need to know to successfully resolve it.

A Guide to Zombie Debt Collections 

What Is a Zombie Debt?

Essentially, zombie debts are financial obligations that are quite old or no longer owed but have been sold by the original creditor to a new debt collector for a substantially low amount. Upon acquiring the debt, they will then take over the efforts of trying to get the debtor to pay the balance. This may be a debt you’ve completely forgotten about or one you don’t recognize because it was never actually yours to begin with.

How to Know if You’re Legally Responsible for Zombie Debts

Debt collectors purchase all types of debt hoping to get the debtor to pay back at least a portion of it so they can make a profit. However, in many cases, the statute of limitations has already passed on zombie debts. This means you wouldn’t be legally required to pay it.

There are other circumstances in which a debt may be discharged in a bankruptcy unbeknownst to the creditors, also absolving you of any responsibility. Another possibility is that you could be the victim of identity theft or involved in a case of mistaken identity. 

How to Fight Zombie Debt 

Fortunately, there are several ways you can protect yourself from zombie debt collections. If you are contacted about a zombie debt, it’s best to limit all communication with the collection agency and never admit the debt is yours. Ask for verification of the company’s operations and proof that the debt is yours.

No matter what they tell you, don’t make any payments on the debt, as this will revive it and reset the statute of limitations. If you believe you’re being falsely accused of owing a debt, you can also ask the collector to stop contacting you. In the event you know the debt was discharged in a bankruptcy, you may request your lawyer to send a letter on your behalf.

It’s crucial that you know your rights in situations involving zombie debt collection. This will ensure you aren’t forced into paying a debt you don’t owe. If you have questions about bankruptcy and the process of eliminating old debts, don’t hesitate to reach out to Bueker Law Firm. Their legal team offers nearly two decades of experience practicing bankruptcy law and can help explore all your options for regaining financial freedom. Call the firm’s Stuttgart, AR office at (870) 673-1313 to schedule a consultation or visit them online for more information on obtaining representation.