All bankruptcy attorneys are not created equal. Schedule A Free Case Evaluation
Nowack & Olson, PLLC
Let’s do this together.
Speak with one of our professionals.
888-813-4737

Collections agencies pursuing consumers for zombie debts

As credit and debt become larger parts of American life, the debt collection industry has spawned a new term, zombie debt. Some Florida residents may already be familiar with the term, which refers to dormant bills brought back to life, so to speak, by debt collection companies. In some cases, zombie debt may arise from nowhere, as it is not uncommon for collections agencies to hound consumers for debts they never incurred in the first place.

It's an uncomfortable, anxiety-inducing circumstance. A debt that has been settled or otherwise discharged is cleared off of the books of the original creditor, who sells it to a third-party debt collector, who then begins efforts to collect the money from a person who thought the debt was a thing of the past. Zombie debt most commonly comes from debts a person owes but has forgotten, debts that have been previously settled, debts that have been discharged in bankruptcy, debts for which the statute of limitations has expired and fraudulent debts resulting from identity theft.

One of the primary dangers of zombie debt, according to an attorney with the Federal Trade Commission, is simply its age. In combination with the aggressive tactics often employed by debt collectors, the age of the debt may make its validity difficult to verify. But consumers should be wary of making a payment on an old debt as doing so could reset the applicable statute of limitations.

Those who are struggling with creditor calls and collections agencies may have options when it comes to debt relief. An attorney with experience in bankruptcy law may be able to suggest strategies to consolidate or reduce certain debts. An attorney may be able to advise individuals regarding personal bankruptcy under Chapter 7 or Chapter 13 or may help to negotiate a settlement with creditors.

No Comments

Leave a comment
Comment Information

We take your situation as seriously as you do.

Start with a Free Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

What Our Clients Say:

Back
  • "Maria please let Attorney Olson know how pleased I am with the results of my home loan modification with Bank of America. I am so grateful for all of their hard work, especially since my house was a gift from my parents, I prayed not to lose it to foreclosure....."

    Cassandra M.
  • "We received last Friday our bankruptcy discharged letter for the trustee.
    We want to thank you very much for your services in our bankruptcy file.
    We are very pleased and happy with your service, you are so professional, courteous, organized and fast.

    We will recommend you every time we can.
    God Bless You!"

    Yazmin & Ricardo D.
  • "MY EXPERIENCE WITH MITCH AND CHRIS AND U WERE JUST A GREAT EXPERIENCE I WANTED TO GIVE UP PRIOR TO U GUYS.. DON'T WANT TO FORGET ABOUT LEO, HE'S ALSO GREAT PERSON..COMMUNICATE REALLY GREAT WITH ME,,ACTUALLY ALL OF U ....I CAN EMAIL OR CALL .U ALL ALWAYS REPLY TO ME....."

    Tonya C.
  • "I was very pleased with work of Nowack & Olson, and way you guide me through all process of bankruptcy and loan modification. I received good care and was informed on every step of it. Thank You very much. You save my life!"

    Kasia D.
  • "Just wanted to thank you again for helping my wife and family through a tough time. We are finally starting to get back on our feet and building back our nest egg. We have stabilized our income again, and see the light at the end of the tunnel. I remember one of your tag lines was helping good people through bad times... That always rang true with us....."

    Peter R.
  • "After a rather distasteful experience with a Foreclosure Attorney I was apprehensive to say the least to hire an Attorney to handle our Bankruptcy. After some internet searches and research I found Christian Olsen, and after our initial consultation my wife and I retained his services....."

    Bobby and Tanya
  • "I am a teacher who reaped the rewards of a profitable side business until shortly after the recession. I struggled to keep my business afloat until I finally threw in the towel. Between personal and business debt, I was suffocating in bills....."

    Richard C.
Read More Testimonials

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.