Fight Zombie Debt!

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

still profitable.

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

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Fridlin & Associates, P.C. is a financial law firm for individuals and small businesses in metropolitan New York. If you or your business face a problem concerning bankruptcy, debt settlement, loan modification program, the sale and purchase of residential or commercial real estate, landlord/tenant disputes, enforcing your rights as a creditor, the sale and purchase of a business, or employment litigation, Fridlin & Associates stand ready to provide the solution that protects your best interests. We can help you: Eliminate Debt! Stop Foreclosure! File for Bankruptcy! Apply for a Loan Modification Program! Stop Wage Garnishment! Stop Lawsuits! Eliminate Judgments! Eliminate or Reduce the second mortgage on your home! Reduce the mortgage on your investment property to its fair market value! Eliminate your obligation to pay creditors and medical expenses! Eliminate business loans! Release Frozen Bank Accounts! Stop harassing phone calls! Please call 718-372-4400 today for a free consultation. We have appointments available Monday through Friday and your first visit is free. Fridlin & Associates, P.C., also provides legal representation on wage dispute matters under the Fair Labor Standards Act in both federal and state courts. Learn more about Elaine Fridlin and Fridlin & Associates here. If you’re interested in bankruptcy as a potential solution to your debt management problems, you can learn more about bankruptcy for both consumers and businesses here.

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