Zombie debt is literally debt raised from the dead. It comes in many forms and could be debt that you don't even owe. Sometimes zombie debt appears as old debts that were never paid, but the statute of limitations has expired. Some forms of zombie debt come from old bankruptcy filings where the debt was actually discharged and no longer owed. Many companies repackage these debts and sell them for pennies on the dollars hoping to sucker unsuspecting consumers into paying them even though they are no longer owed.
Here are the most common forms of zombie debt:
- Debts that are expired due to the statute of limitations;
- Debts previously discharged in bankruptcy;
- Debts you already paid;
- Debts that aren't yours but are result of identity theft
Why do debt collectors go after zombie debt. That's easy, because there's money in it and people are easily convinced to pay. The big question is what do you do when contacted by a debt collector about zombie debt? The first this you do is take all the information you can, such as the name of the company, their contact info, the information of the person you spoke to, details regarding the debt, etc. These are easy lawsuits for violations of the Fair Debt Collections Practices Act (FDCPA) and the Florida Consumer Collections Practices Act (FCCPA). If you are contacted by a debt collector regarding an old or zombie debt call us today.