Zombie debt is an old debt that resurfaces after years of little or no collection activity. You may receive a call, letter, or lawsuit about an account you thought was resolved, forgotten, or too old to collect. A debt collector may still contact you about an old debt in some circumstances, but that does not necessarily mean the debt is legally enforceable. Before making a payment or agreeing to a repayment plan, it is important to determine the debt’s age, status, and applicable legal rules. What Is Zombie Debt? Zombie debt generally refers to an old debt that has resurfaced after being inactive for a significant period. The debt may have been sold to a collection agency, returned to active collection, or pursued after a consumer believed the matter was finished. Zombie debt can involve credit cards, personal loans, medical bills, or other unsecured obligations. In some cases, the debt may be legitimate but too old to sue on, while in others, there may be inaccurate records or debts the consumer does not actually owe. How Does Zombie Debt Come Back? Old debts can resurface for several reasons. A creditor may sell an account to a debt buyer, a collection […]
