What is Zombie Debt?
Some people have debts in their past that they have not payed off or simply have forgotten
bout it. These accounts may have been written off as “uncollectable” by the original loan
issuer. Debts are considered to be uncollectable if the debtor cannot be found, or the debtor
was unable to pay off their debts. Most companies stop trying to collect completely once the debt has reached the age of 6 years, which is the statute of limitations for debts in most
states. Once the debt has reached this point, the debtor is no longer legally required to pay
it off. However some of the old debts can still have some value. There are companies who
buy uncollectable debts for a small percentage of their original value. Since companies do
not pay much to acquire these zombie debts, getting paid a fraction of the loan is
What Should I Do if I am Contacted?
If someone contacts you about collecting a debt, do not speak to anyone over the phone.
Ask the debt collection company for their address and send them a letter within 35 days of
initial contact. This letter should dispute the fact that you owe the debt, and should
request proof of the debts validity be provided. You should NEVER acknowledge that you
owe the debts. Do not contact the creditor until you receive proof of the debts validity. The
debt collection company is required under the Fair Debt Collection Practices Act to
provide you with written proof that the debt is valid or a judgement against you, along
with the name of the original creditor, assuming the debt was resold.
Upon receiving this information, you should be able to determine if the debt is
yours, and if the statute of limitations applies. If you do not take action on a
zombie debt, but the debt collection agency continues to contact you, write them a
letter stating that they may not contact you unless it is in writing or they wish to sue
you. Zombie debts are usually past the statute of limitations and no legal action can be
Should I pay the debt?
You should find out what is the statute of limitations for collecting a debt is in your state.
For most states it’s 6 years. If it has been over 6 years since the last time you made a
payment most likely the statute of limitations has passed and you should not pay it.
Paying any amount of the debt can restart the statute of limitations, causing you to be
liable for the debts. This is what the collection agency is hoping for, by making a payment
they can go after you to collect the debt.
If you are not sure how to fight zombie debt or want to know your legal rights please
contact Fridlin & Associates at 7183724400 or e-mail your questions to