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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?
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.
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.
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.
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?
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.
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.
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.
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.
Been there done that. Soemtimes you just got to do what you got to do.
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.
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.
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.
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.
Mine was a Chapter 7 also (in 2000).
See how much we have in common. I regret the bad marks to my credit but not the bankrupsy itself. I do not know how I would have survived with a four year old and being a single parent had I not been able to do bankrupsy. I don't knock anyone who does. Sometimes you see that here but once you have been down far enough and had to do it most just wouldn't understand.
I absolutely do not regret the bankruptcy either. To me it was a lifesaver...I understand what you are saying and here and the other forums people tend to stay away from discussing filing bankruptcy. Now I am not saying it should be somelthing you should just do when in a rough spot, but it is an option that people are scared of sometimes.
But, I say if you are in a position where filing bankruptcy is an option AND it is an option that would actually help your current living situation by enabling you to provide more income for your family, then it should be done.
Yep. If it is causing you so much stress that you can not function why let it take years off your life. Just get it done and learn from it.
EXACTLY!.....When I was a kid, I remember these neighbors filing bankruptcy and the bank (i guess) coming and packing up all of the furniture and the mom sobbing in her house. I think bankruptcy has changed a bit, with the Ch 7 and Ch 13 or Ch 11.
I am not so sure anymore that it would have to include your home unless you filed bankrupsy on the morgage.
that is so sad
It wasn't their home that was taken (they rented), it was all of their furniture, household goods, etc.
Still it effects is the same. It all is a peice of you whether a piece of furniture ar the bed your child lays their head down at night.
oh man, now how much could they actually get out of furniture, especially since it was all used stuff.
bill collectors don't care, they just want thier money
Yes, it was very sad and traumatic. I knew them for many years and they eventually recovered and bought a home, etc.
Good to hear that they have recovered, they probably cherish their home more than anything now that they have experienced this loss.
Maybe---they were very different people. Hard to say if it had a negative effect on them and if it did they would never admit to it.
In Chapter 7 bankruptcy, the debts are discharged in exchange of certain amount of property you own. In Chapter 7, only non exempt properties can be sold off by the court appointed trustee to repay the debt, but the necessities of the debtor which falls under exempted properties cannot be sold. But under Chapter 13 bankruptcy however, the debtor is given a repayment plan by the court and the amount of money to be paid back towards the debt depends on the income that the debtor earns per month. Under Chapter 13 bankruptcy, your assets are not sold off, but you need to pay back the amount within a period of 3 to 5 years under the repayment plan as set up by the bankruptcy court.
I don't know when Chapter 7 and 13 came about, but this particular situation regarding my parent's friemds was about 1968.
Well that explains the difference. I do not see the bankrupsy I had but I am pretty sure it was unlucky 13 but at the time I didn't have to pay it off and Thank God...losing my spouse and raising a child on my own was hard enough..I do not know what I would have done.
Sometimes, as we all know, a person has to do what is best for THEM at that time. No matter what anyone else says. If it works for you and you are happy with the results then great. I hate when people try and say "no, don't do this or that cause I had a bad experience". That doesn't mean that everyone else will.
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True, LORRI. Whatever the situation, people, on this forum, give advice on their experiences on CC's, Debt Consolidation Companies, etc. The same thing doesn't work for everyone. Everyone's circumstances are different.
And it goes for every thing else as well---restaurants, stores, etc. You have to make up your own mind for yourself. My aunt won't eat at a certain Mexican restaurant once because she had a greasy taco 10 YEARS ago---but elderly people can be like that sometimes. I eat at the same place and love it.
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My dad use to say, "if something is not 'broken', then why try 'fixing it'." Which..to ME means, if something 'works' for you, then why change it.
True-----but, sometimes people (not you personally) can get so caught up doing something the same ol' way that they won't allow themselves to see anything different.