Although you may understand the importance of paying debts and being up-to-date on all collections, unexpected expenses can arise, and you may find yourself owing money. Understanding the different types of debts is crucial to ensure fast, effective resolution. The following guide outlines one of the most common types, “zombie debt,” so you can work with your bankruptcy lawyer to rectify the situation. 

What Is Zombie Debt?

Zombie debt refers to owed money that was once discarded but is now being revitalized by collectors. Here’s how it works: if you had a debt you were unable to pay for a time, the collector might have chosen to stop pursuing repayment. However, they might also choose to sell that debt to a new party, in which case, the new individual would begin pursuing the collection once again. These people are called “debt scavengers.” 

What Kinds of Debt Do Scavengers Pursue?

Most of the debts sold to scavengers are ones that you couldn’t afford to pay off originally. For example, one of the most common types of zombie debts pursued by scavengers is a balance discharged under bankruptcy. Another is seeking repayment for a debt that may not have been yours in the first place or owed money that has already run past its statute of limitations. 

What Should You Do if a Debt Scavenger Contacts You?

First, never admit or claim that the debt in question is yours. Instead, tell the scavenger you won’t be speaking with them, and if they have any questions, they can get in touch with your bankruptcy lawyer. If the scavenger continues trying to collect payment from you or your attorney, have your lawyer file a notice with the debt collection agency disputing the claim. 

If you’re struggling with unpaid debts, talk to a bankruptcy lawyer at Swartz Law Office in Batavia, OH. With almost 20 years of experience providing top-quality legal counsel, they have the insight and expertise needed to help you maintain solid financial health. Visit their website to learn more about their practice, and call (513) 732-0900 to schedule a consultation today.