If you suddenly have a creditor calling you regarding a debt from years ago, you may be facing so-called “zombie debt.” These creditors, known as debt scavengers, are especially sneaky. They may even try tricks like attempting to collect on debts that a bankruptcy attorney has successfully discharged. Here’s how to protect yourself.

What Types of Zombie Debt Exist

When a creditor can’t collect a debt for years, they write it off as “uncollectible.” To avoid losing all of their investment, they sell these accounts to new credit agencies—debt scavengers—at cheap rates. 

The new agency then starts the collection process all over again, often ruthlessly. For instance, they may try to collect debts that were technically discharged by a bankruptcy attorney or those that were amassed due to a case of identity theft—and aren’t even technically yours. They may also pursue accounts where the statute of limitations to pay the debt back has run out.

How to Protect Yourself

If you are contacted by a creditor regarding zombie debt, do not engage with them. Getting sucked into a telephone conversation won’t help you. Say or do the wrong thing, and you could find yourself actually legally obligated to pay the debt in question.

For instance, they might harass you with phone calls, asking you to pay a tiny part of the debt and promising they will leave you in peace if you do. What you don’t know, however, is that by paying any part of the debt, you are essentially acknowledging it is yours—and then bound to pay it all.  Never give them any personal information about you.  Never give out bank account information.  

The best action to take when debt scavengers arise is to have a debt relief and bankruptcy attorney send them a certified letter requesting proof of the debt’s validity, as well as the name and address of the original creditor they bought the debt from. The law requires them to provide this information.  If you are ever sued by a scavenger, talk to a debt relief attorney immediately.  Many times this is a scare tactic as they have no ability to prove the case and get a judgment.   Don’t make it easy for them.  Show to court and contest it.   

Once you have these details, you can determine if the debt is valid. If so, the creditor can take legal action against you–in which case your bankruptcy attorney will be on hand to help.

For a debt relief and bankruptcy attorney with experience tackling tough creditors, trust O'Neill Law Firm, LLC. Located in La Crosse, WI, these professionals bring more than 20 years of experience to the table. Whether you need a divorce lawyer or a DUI attorney, they can help. Whatever you turn to them for, you can expect professionalism and honesty–as their online testimonials show. For a free consultation, call (608) 519-3551.