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Zombie Debt

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Lorri



Joined: 15 Jul 2008
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Posts: 295



6 Magic Points
Subject: Zombie Debt
 
 Posted on Mon Sep 01, 2008 4:09 am  
Has anyone ever heard of Zombie debt? I came across an article on the net today and it gave a little history of it. The article gave the scenario of say 20 years ago your wallet was stolen. The thief racked up 1300 worth of debt, you reported the theft and paid (I think) the part of the charges that you would have been responsible. Now 20 years later, the debt has been sold and you are being hounded by the account owner to pay this debt. I don't understand how this could happen---doesn't a SOL have an effect here?
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anthony

anthony

Joined: 31 Jul 2006
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Posts: 493



12319 Magic Points
 
 Posted on Mon Sep 01, 2008 6:26 am  
You are correct Lorri. As far as I know, Zombie debt are some old debts which have already passed ten years or more and comes to light all of a sudden. These debts are either a result of identity theft or were discharged due to bankruptcy. The CAs who deals with these debts purchase these debts for a very small amount and make huge profits as soon as they succeed in collecting the debt. These collectors use various illegal tactics like re-aging debt on credit reports illegally, try to sue the debtor even after SOL is over and the like.
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Justin

Justin

Joined: 17 Jul 2006
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Posts: 417



10874 Magic Points
 
 Posted on Mon Sep 01, 2008 6:44 am  
Zombie debt collectors cannot sue you to the court if the debt has already passed the Statute of Limitation in your state. If they threaten you over phone, just disconnect the phone call because if you keep talking, they may influence you to pay only a small amount to close the debt account. But the most important thing is that as soon as you pay the money after the SOL expires, your SOL will rewind and the creditor or the CA can again sue you to the court to take away the entire debt from you.
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Mary

Mary

Joined: 06 Jul 2006
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Posts: 324



8704 Magic Points
 
 Posted on Mon Sep 01, 2008 7:12 am  
I agree with both of you. If the creditors harass you for repaying the debt, you can file a complaint with the FTC and the State AGs office. You should also check your credit report to find out whether the CA has illegally reported the old debt to the bureaus or not. If they have reported it to the bureaus send DV letters to the CA which I think they would not be able to validate. Wait for 30 days from the date of receipt of the letter and send dispute letters to the bureaus asking them to delete the listing from your report.
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Lorri



Joined: 15 Jul 2008
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Posts: 295



6 Magic Points
 
 Posted on Wed Sep 03, 2008 4:07 am  
I don't understand how a debt that has been discharged in bankruptcy could then be purchased by another creditor? I thought bankruptcy took care of that? Now I am wondering about the Chapter 7 I filed 8 years ago. Does that mean those debts can still come back to haunt me in the future?
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fireyone



Joined: 26 Feb 2008
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2195 Magic Points
 
 Posted on Thu Sep 04, 2008 1:58 am  
Not that I know of. I am not sure which bankrupsy I filed after my first "hubby" died but I was not in good mental shape at the time. I know that I have never been contacted on anything and that has been 16 years ago.
 
Lorri



Joined: 15 Jul 2008
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Posts: 295



6 Magic Points
 
 Posted on Thu Sep 04, 2008 5:40 am  
Hmm---I have never been contacted either. But, in this day and time you never know when things change or something comes up. Oh well, I won't worry about something that has not happened.
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fireyone



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2195 Magic Points
 
 Posted on Thu Sep 04, 2008 11:31 am  
Just keep an eye on your credit report for any listings that shouldn't be there. What is the difference between chapt. 7 and chapt. 13? I know there are at least these two chapters.
Your bankruptsy should be falling off in two years. This is good. I know I was really happy when mine fell off. It jsut was sooo long to wait. I really wish they would change the lenghth of time on these. Its not like most want to do it. In my case after the death I had no choice.
 
goodnatured



Joined: 03 Nov 2007
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Posts: 3137



5334 Magic Points
 
 Posted on Fri Sep 05, 2008 2:37 am  
It takes a long time to fall off, oh god, I had a long ten years, it haunted me for a long time, but I really could see no way out but to file it. Happy to say that it fell off sometime ago and I can answer no to the bankruptcy question.
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fireyone



Joined: 26 Feb 2008
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2195 Magic Points
 
 Posted on Sat Sep 06, 2008 2:51 am  
Been there done that. Soemtimes you just got to do what you got to do.
 
goodnatured



Joined: 03 Nov 2007
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5334 Magic Points
 
 Posted on Sat Sep 06, 2008 3:05 am  
I was in a bad place at that time, financially I was strapped, had the collectors on my butt so bad, was just down right depressed. I filed and then dealt with it for the next ten years until it fell off my report. It was a hard decision to make, but I really had not choice. I did keep some of my bills, so I did not file on everything, only those things that I had too.
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
fireyone



Joined: 26 Feb 2008
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Posts: 2871



2195 Magic Points
 
 Posted on Sat Sep 06, 2008 3:06 am  
Been down that path. It was also my only route. None of the collectors evwen came to my hearing. It was over in like 10 min.
 
Lorri



Joined: 15 Jul 2008
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Posts: 295



6 Magic Points
 
 Posted on Sat Sep 06, 2008 3:41 am  
I believe that Chapter 7 is the one where you do not have to repay the creditors and Chapter 13 is where you do and I think if you have property or more assets or something you do a 13----not sure on all of it.
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fireyone



Joined: 26 Feb 2008
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2195 Magic Points
 
 Posted on Sun Sep 07, 2008 1:39 am  
Then mine was chapter 7. I could have nevr paid them all off. My hubby had cancer and we had to use them to pay for the trips to a medical facility in a big city. It was my first hubby.
 
Lorri



Joined: 15 Jul 2008
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Posts: 295



6 Magic Points
 
 Posted on Mon Sep 08, 2008 6:07 am  
Mine was a Chapter 7 also (in 2000).
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