Filing bankruptcy offers consumers freedom from debts that they have been struggling to pay. However, in some cases, it’s possible for old debt to reappear and wreak havoc on the fresh financial start they’ve been given. This is referred to as zombie debt, and it can cause a number of issues for people trying to reestablish their credit and build an economically secure future. If you are dealing with a zombie debt, it’s important to understand your rights and the steps you should take to reach a resolution. 

What Is Zombie Debt? 

Zombie debt is a financial obligation an individual had so long ago that is either no longer owed or the creditor essentially gave up on collecting and sold to a third party for a substantially lesser amount. In turn, the new owner of the debt will attempt to maximize their investment by trying to get the debtor to pay the remaining balance. It’s not uncommon for a consumer to be approached with a debt they’ve forgotten about or don’t recognize because it was never actually theirs.

What Forms Can It Take?  

Those that have decided to become a zombie debt collector may try to reclaim lost funds on many different forms of debt. Often, this includes debts that have already been settled or discharged in a bankruptcy without the knowledge of the original creditor, which would absolve the debtor of any responsibility for them. In other cases, a debt has gone overlooked for such a long period of time that it is past the statute of limitations; therefore, the debtor is not legally required to pay it back.

What Can Consumers Do to Protect Themselves?

There are several steps a consumer should take to protect themselves if they are contacted regarding a zombie debt. It’s best to avoid acknowledging the debt or agreeing to pay any portion of it. Instead, communication with the collector should be limited to asking for proof of the debt and verification of their operations. It’s also a good idea to send a letter requesting all contact to stop. If a particular debt was discharged in a bankruptcy, the debtor’s attorney can send validation on their behalf. 

If you have a zombie debt dispute that won’t go away, it’s vital to consult a bankruptcy attorney to see what your options are. The legal team at Zellar & Zellar, Attorneys at Law, Inc., can assist you in determining the best course of action to take. If you have yet to file bankruptcy for other debt you’ve incurred, they will guide you through the process to eliminate both problems. The law firm has been an established part of the Columbus, OH, community since 1965 and helped numerous clients reach their financial goals. Call (614) 257-1643 to schedule a free consultation or visit them online to learn more about the bankruptcy services they offer. 

This article is intended to provide general information, and should not be construed as legal advice or in creating an attorney-client relationship.