What you can do to rid yourself of Zombie debt

SHARE THIS

FACEBOOK

  DELICIOUS

  SU

  REDDIT

There are certain companies who look for debt collection from a very long time ago. Sometimes, there is a possibility that you may not owe a company any kind of debt in legal terms, however, these companies may come around asking you for payment of these debts. This is one of the newest tactics of some debt companies that lead them to extremely profitable avenues. In a usual scenario, it is these companies that get involved in buying the debt, which can also be referred to as the junk debt. Once they have done that, they look for individuals who they feel can be vulnerable enough to make them pay for these debts. These companies can get extremely abusive and use of profanity is very common. Besides, constantly harassing with phone calls and threats of taking you to court is what these companies are likely to do. Sometimes, when you are trying to understand the difference between bankruptcy vs debt settlement, you may have to face a completely new form of debt called the zombie debt. Given below are some excellent tips that will ensure that you handle this type of debt effectively.

1.)   Refrain from showing any kind of recognition towards the debt:

The worst thing that you can do to land yourself in trouble is accepting that the debt is yours despite being unsure as to whether you owe it or not. Look into the details to ensure that you do not owe any kind of debt. Be very wise with your choice of words. Do not make any promises of payment of this zombie debt if you are unaware as to where it is coming from. If you fall into this trap and accept that you owe the debt, the company can use this against you and make the case legal thus landing you in unnecessary trouble.

2.)   Believe only in the written word:

If a company claims that you old debt has been brought back to life, you need to demand a written document stating the same. There will be a detailed written record of the debts that you owe and the debts that you have successfully paid off. Besides, a document stating the detailed credit history will also be available. These are the proofs that you have working your favour. If the concerned company is unable to produce these documents as evidence, they have absolutely no power to do anything legal against you. Therefore, if you do get calls from such companies, you must never acknowledge it and ask for written evidence.

3.)   Check with your attorney:

If the calls get incessant, it is best that you get in touch with a lawyer who will be in a better position to explain all the legal details. You can ask them about bankruptcy vs debt settlement and more importantly the details on zombie debts. He will essentially guide you in terms of the period that is allowed wherein you can avoid paying debts and what happens when it expires. Therefore, getting more information about your situation from your lawyer is a must.

4.)   Do not fall prey to any offers:

These companies may lure you by saying that payment of a certain debt that you owed will help you get rid of a downfall in your credit history report. Do not fall for these tactics unless you have carefully mulled over every detail present in the credit report. Sometimes, these companies may even report the old debt to the credit bureau as though it was a brand new debt. Do not fall for this.

Author’s bio:

Camille George is a lawyer specialising in debt settlement. She advises her clients in cases of bankruptcy vs debt settlement. She has been working in this industry for over 6 years and plans to start her very own online law training institute.