There is a clever name for debts so old that it is too late for filing lawsuits to collect them. Bankruptcy lawyers call them “zombie debt,” because although they are dead, they still hang around. Here’s what you should know about these financial ghouls.

Knowing the Facts About Zombie Debt & Bankruptcy

Zombie Debt Defined

Zombie debt is debt that has some value but is too old or too difficult to collect by usual means. Debts that have been charged off or inactive for seven years or more, belong to someone else, or discharged in bankruptcy fall in the zombie debt category.

Debts People Try to Collect

Debt scavengers are debt collectors who attempt to recover zombie debt. They spend pennies on the dollar and buy the rights to collect old debts, and then track down the debtors and harass them for payment. Credit card debt, hospital bills, and signature loans are among the types of debts purchased.

How You Should Protect Yourself

If you are contacted by phone or in person about a zombie debt, do not admit owing it. Ask for the address of the debt collection company. Send the company a certified letter within 35 days disputing the debt. Request they send you proof in writing that the debt is valid or of a judgment against you. If the debt was resold, ask for the original creditor’s name and address.

Debt collection agencies must give you this information under the Fair Debt Collection Practices Act (FDCPA). The act also requires a debt inactive for seven years to be taken off your credit report. If you filed bankruptcy or have questions, it is wise to contact a bankruptcy lawyer. 

If zombie debt problems are troubling you, bankruptcy lawyers at Kratovil Law Offices, PLLC are ready to help. Based in Charles Town, WV, these lawyers advise and represent individuals throughout the Eastern Panhandle in debt relief matters. With more than four decades of legal experience, Kratovil Law Offices, PLLC provides clients with deep knowledge and insight, while keeping their best interests as their top priority. Find out more about his background and qualifications online, and call the law office at (304) 728-7718 to schedule a consultation.