Should I Try to Settle Zombie Debt?
Were you recently contacted by a debt collector who said you owe a debt that has gone unpaid for a number of years now? If so, the phone call, email, or text message you received have been about something known as “zombie debt.” What is zombie debt? As Experian explains, this is a type of “resurrected debt that you may no longer owe or that does not belong to you, but that a debt collector will try to get you to pay anyway.”
Your first instinct may be to try to get rid of this debt as quickly as possible. As such, you may be wondering if it is a good idea to settle this older debt that you have been informed about. Depending on the specific circumstances, it could be helpful to settle an older debt. At the same time, debt settlement might not be the right decision at all under the circumstances. Our Georgia debt settlement attorneys can explain.
Understanding Zombie Debt
Zombie debt can take many forms, and the specific kind of zombie debt that you were contacted about will play a key role in determining whether it makes sense to try to settle this debt. In general, all of the following are considered to be zombie debt:
- Debt you settled previously;
- Debt you did not pay, but the statute of limitations has run out; and
- Debt that you never owed in the first place, or fraudulent debt.
When Does It Make Sense to Try to Negotiate a Debt Settlement Agreement for Old Debt?
In general, you should only consider debt settlement for an older debt if you actually owe the debt and if the statute of limitations has not yet run out on that debt. In Georgia, the statute of limitations on most consumer debt is six years. Within that six-year period, creditors or debt collectors can take legal action against you to recover the money you owe. Once the statute of limitations runs out, the debt becomes time-barred. Accordingly, creditors and debt collectors are barred from taking any legal action against you to recover.
If you never owed the debt (that is, if the debt is fraudulent), or if you already settled the debt or the statute of limitations has run out, you should not attempt any new payment actions. To be clear, you should not try to settle the debt and should not make any payments to the debt collector. Making even a single payment can renew the statute of limitations.
How can you learn more about the details of the debt and whether you should consider debt settlement? You should discuss your circumstances with an attorney who can determine whether you have indeed been contacted about a zombie debt for which you are not liable or if you should begin the process of debt settlement negotiations.
Contact a Lilburn Debt Settlement Attorney for Assistance Settling Debt and Understanding Your Rights Under Debt Collection Laws
Receiving a phone call, email, or text message about zombie debt can be stressful. If you are in a position to make a payment on an old debt that a debt collector says you owe, your impulse may be to pay part of the debt in order to avoid harm to your credit. Yet often, as we discussed above, the statute of limitations may have run out on zombie debt. In other cases, you may be getting contact about a zombie debt that you never even owed in the first place. If you do have an old debt for which the statute of limitations has not run out, settlement can be an option. However, before you consider debt settlement for a zombie debt, it is important to seek legal advice. An experienced Lilburn debt settlement lawyer at Konn Law Firm LLC can discuss the details of your debt with you today and can advise you about settling any existing older debt that you may owe. Contact us to learn more.
Source:
consumered.georgia.gov/
