Today is Thursday, but in 1929 the 29th of October fell on a Tuesday…so did the Stock Market. In more recent history, we have encountered the Great Recession. While we continue the recovery, sometimes old credit card debt comes back to haunt, making consumers victims of Zombie Debt.
Zombie Debt is debt that has been dead for a while, but does not know it is dead, and walks the streets looking for a victim.
The problem with Zombie Debt is that the debt is matured when the consumer fails to make payments. Once the debt is matured, then the Statute of Limitations clock begins to tick, and runs for five to seven years (depending on which state the credit card is initiated).
Another problem with Zombie Debt is that Zombie Debt collectors will say anything to get you to reanimate the debt; they whisper sweet nothings like, “Send us five dollars.” Beware, even a penny can resurrect the dead debt.
Even if you already have a Judgment against you for this debt, you could be faced with a second Judgment for the same debt.
The business model for collecting on Zombie Debt is based on numbers—debt-buyers purchase debt in bulk for pennies on the dollar, and then attempt to collect, which includes filing lawsuits in bulk to make more money than they lose.
Zombies are generally known to be slow, but relentless. Similarly, companies pursing Zombie Debt do not expect every case to pay off, but they employ a zombie strategy of menace in numbers to make more profits than losses. Zombie Debt Collection works because people do not know any better. Consumers fail to question what is happening and do not realize they may have a legal defense.
Not all debt is Zombie Debt, but a legal defense can help you deal with debt…and undead debt that may come back to haunt you. Seek competent legal counsel if you are haunted by debt.