Lately, there's been a lot of talk about the zombie apocalypse and how we should combat it. The term zombie has been thrown around loosely and now has even found its way into the financial system. Over the last few years, doomsday preppers have been preparing for the zombie apocalypse when it comes. What does someone do that has been attacked by zombie debt after filing bankruptcy? What is zombie debt? First of all, let's talk about Zombie debt and how it comes about. A zombie debt can happen to just about anyone, but lately many individuals filing bankruptcy have seen this debt come back to haunt them long after the bankruptcy discharge. It can happen in various ways like someone has run up multiple credit cards and continued kicking the can down the road to the point of when it was necessary to file bankruptcy because this debt was no longer affordable or feasible to pay. Most of these accounts had gone to collection because of not paying on them for many months. When accounts go to collection, sometimes the creditor will charge them off and sell the debt to the debt buyer for pennies on the dollar. These debt buyers will flip the debt to collection agencies nationwide which allows them to collect on all that debt.
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When filing for bankruptcy the individual will be required to list all of their creditors and current addresses so the bankruptcy court can notify the creditor of the pending bankruptcy filing. Some of these debts might have been sold in this window of time and are no longer held by the creditor that the debtor originally owed to. When the creditor gets notified by the bankruptcy court they might not know who owns the debt, so it just slips through the cracks. So the person filing for bankruptcy jumps through all the hoops necessary to get a successful bankruptcy discharge thinking they are debt free and now can move on with their lives. Technically, that is true. But wait a minute, the zombie debt buyer might not know about any bankruptcy and all they know is the debt they are holding is still owed. This might not surface until a year or more after the bankruptcy. When a person gets faced with this situation, they should first call their bankruptcy attorney and ask how to proceed. If that's not an option, they should respond to the debt collection company and send them a copy of the bankruptcy discharge. The last thing someone should do is blow off the debt collection company. Most of these companies are very aggressive and sometimes unscrupulous with their tactics to collect on these debts and have been known to file lawsuits against the debtors. If the debtor does not respond to the lawsuit, the debt buyer can get a default judgment and turn an otherwise uncollectible debt into a current judgment that would allow them to lien property and/or file a wage garnishment.
Some zombie debt buyers know the debt is uncollectible, yet continue to harass the individual post bankruptcy filing. They will try to coerce a payment out of the individual to make them go away. In some states making a payment will revive an old debt. Some of these debts are not even collectible because of the statue to limitations has expired. People facing zombie debt need to face it head on and not allow the debt buyer to bully them into doing something that is not necessary. If this zombie debt won't go away it's time to hire legal counsel and go after the debt buyer with legal action. There are laws to protect consumers from this kind of activity.
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