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One of the most stressful things about being in debt is how long it can impact your life. Sometimes, a debt may be so old that your creditors can no longer collect on it. That does not mean unethical collectors won’t try to collect on this debt, though, putting you in a difficult situation.
The rise of this “zombie debt” is a growing problem in Florida. But the foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers can help if someone is trying to collect on these debts. Contact our office for a free consultation to learn more.
What Is a Zombie Debt?
“Zombie debt” is a term for debt that is old or you no longer owe. These debts may have been previously discharged in bankruptcy or are so old that your creditors can no longer take action against you. However, people sometimes buy these debts and try to collect on them, using scare tactics or intimidation to force debtors to pay up when they no longer owe anything.
There are a few common types of zombie debts that debt scavengers will try to collect on, such as:
- Expired debts – When you owe money to your creditors, they have a limited window to take legal action if you fail to pay back the debt. If the statute of limitations on a zombie debt has expired, you no longer have to pay them back.
- Debts discharged in bankruptcy – The point of bankruptcy is to clear away your debts and give you a fresh financial start. You do not have to pay debts discharged in bankruptcy.
- Debts that were not yours – Even in this age of electronic records and databases, it is possible for your debts to be confused with someone else’s. You do not have to pay a debt you do not owe.
- Debts that have fallen off your credit report – If a debt has been dropped from your credit report, you may still have to pay it. However, it should not impact your credit score. Unfortunately, debt scavengers sometimes report old debts as new so they reappear on your credit report, which can have severe financial consequences.
How to Deal With a Zombie Debt
Do not agree to pay any debt you believe you do not owe. In fact, you should say as little as possible if someone contacts you about a zombie debt. You do not want to give the debt collector any information to use against you or potentially revive the debt.
You should do some research before you take any action. The Fair Debt Collection Practices Act and other laws provide certain legal protections for borrowers. You can also ask the debt collector to validate the debt you allegedly owe.
No matter what, talk to a lawyer right away. A debt defense attorney can review your situation, tell you if you have to pay the zombie debt, and help you deal with debt scavengers.
How to Remove Zombie Debt from Your Credit Report
There are ways you can have a zombie debt removed from your credit report. You may have to contact the credit bureau directly, and each of the three main credit bureaus has procedures for these situations. The best and easiest way to remove zombie debts from your credit report is to work with an experienced debt defense lawyer.
Talk to Our Experienced Debt Defense Attorneys in Fort Lauderdale, FL Today
Is someone trying to collect on your old or expired zombie debt? Our Fort Lauderdale debt defense lawyers have more than 100 years of combined legal experience and have helped our clients eliminate more than $100 million in debts. To learn more about how to deal with zombie debt, contact us today for a free consultation.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
