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For many people, working with a bankruptcy attorney is the most effective way to regain financial freedom from overwhelming debt. There is a great sense of relief that accompanies a bankruptcy discharge. Unfortunately, that feeling can quickly be marred by the sudden emergence of zombie debt. You may be experiencing this yourself if a debt collector has started contacting you about an old financial obligation you thought no longer existed. Since a debt from your past can wreak havoc on your current economic situation, it’s essential to learn the following information.  

What You Need to Know About Zombie Debt Collections 

What Is Zombie Debt? 

Zombie debt is a term used to refer to unpaid financial obligations that an individual may have held long ago. These debts are often sold to a third-party debt collector once the original creditor has decided to forego any further efforts to collect what they’re owed. In turn, the new owner of the debt will begin requesting the debtor to pay off the remaining balance. Often, the debt will be one a consumer has forgotten about or doesn’t recognize because it wasn’t ever theirs to start with.

What Are Some Common Types of Zombie Debt? 

bankruptcy attorneyThose who specialize in purchasing creditor accounts with an outstanding balance will usually attempt to revive many different types of debts. This can include debts that are past the statute of limitations or have been paid in full. In other instances, zombie debts are a case of mistaken identity or financial obligations already discharged in a bankruptcy. Under any of these circumstances, the consumer would not be legally required to pay the debt collector. 

What Can You Do to Protect Yourself?

If you are being haunted by zombie debt, it’s important to know there are several actions you can take to protect yourself from aggressive collection tactics. Don’t admit to having knowledge of the debt, and never agree to pay any portion of it. It’s best to only communicate with zombie debt collectors long enough to ask for proof of the debt and verification of their operations. You should also send a letter demanding for them to cease all contact. If a certain debt was included in a bankruptcy, your bankruptcy attorney can send validation on your behalf.

 

If you have a previous debt that has been brought back to life by zombie debt collectors, don’t hesitate to contact the bankruptcy attorneys at Cronin Skilton & Skilton, P.L.L.C. For more than eight decades, the firm has been providing residents throughout Nashua and Charles City, IA, with high-quality legal services. They will help explore all your options for debt relief and ensure you aren’t forced to pay a debt you don’t owe. Call (641) 435-2462 to consult an experienced bankruptcy attorney, or visit their website for more information on how they can help you take control of your finances.

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