Zombie Debts

[seanf12]

I have been reading quite a bit about zombie debt collections. I am planning on filing Chap 7 in 2-3 months. Is there anything I can do now to help prevent calls from these collectors down t he road? If I stay current up until the day file, will that help?

Thanks

[MajorMike]

No don't stay current. That's just throwing away money if you know you're filing soon.

[seanf12]

Understood, but just wondering if there are ways to help minimize the chances of a zombie debt popping up several years from now

[MajorMike]

OMG, why are you worried about something like that??? That is the least of your worries! If a debt you have BK'd comes up later, and someone tries to collect, you can sue them!

The FTC has sued several collection agencies over their practices. In 2004, NCO Group -- a major buyer of old debt -- agreed to pay a then-record $1.5 million civil fine after the FTC accused it of reporting inaccurate information to credit bureaus. In 2005, the FTC won a $10.2 million judgment against National Check Control for, among other violations, threatening consumers with lawsuits and jail for purported debts. In many cases, the consumer didn't owe the debt, or the amount had been vastly inflated.

I found the above on zombie debts. They cannot be collected and it's rare that after you file, you'll get called.

[keepmine]

You worry too much!. So what if they call. Nothing they can do about a debt discharged in bk. Just keep a copy of your filing number in a desk drawer and give to someone if they call. I'm 2 1/2 years post filing and no old creditor has contacted me.

[seanf12]

Your right, I am worrying way toooo much. :-)

As always thanks for your responses!

[Cassiopeia]

I've never heard that term before, zombie debt collectors...what does it mean?

(Someone mentioned NCO...oy vey, they had a few of my cards. Nasty people!)

[FreshLikeADaisy]

Cassiopeia, it's when an original creditor sells a charged off debt to a junk debt buyer for pennies on the dollar. The junk debt buyer buys the debt because he stands to make a huge profit if he can collect. It's called zombie debt because you'll have some junk debt buyer calling you *years* after you made the original purchase or loan: it literally rises from the dead.

However, not all debt that is sold is legit. Some is disputed, some is paid off, some is discharged in bankruptcy. Just because someone bought that bad debt doesn't mean that it survives bk. But the collectors can be nasty as hell, and report that debt to your credit bureau as if it were current. It's dishonest and not exactly legal, but it's also not the end of the world: you dispute the charge with the credit bureau and send a copy of your discharge, and slap the collector upside the head with a copy as well. And that's pretty much the end of it.

Hope this helps.

[CindyLou]

I had a few of these come up and I simply faxed over my discharge papers and they completely removed them from my file. The trick is you have to monitor your files often and see anything new pops up. I use true credit and like it but there are many others.

[Cassiopeia]

Thanks for the response FreshLikeADaisy. I think ALL my debt collectors were zombies!

ESPECIALLY the guy for my Dell computer acct.....I forget the name, started with A, something "Alliance" or "Allied."

I hope THAT guy rots in you-know-where. At least I got the last laugh though.

[FreshLikeADaisy]

HA! That's a good one, Cassiopeia! I gotta agree about the whole undead thing... I've had that feeling more than once myself.

[epiphany]

Thanks for the response FreshLikeADaisy. I think ALL my debt collectors were zombies!

ESPECIALLY the guy for my Dell computer acct.....I forget the name, started with A, something "Alliance" or "Allied."

I hope THAT guy rots in you-know-where. At least I got the last laugh though.

I just got a dunning letter from Alliance today trying to collect for Citibank Sears. And just last week Citi had this account with a different collector whom I told I was filing bankruptcy...damn they turned that over fast.

ep

[ichb]

I had a previous Chapter 13 that discharged in 2001, I was young and stupid and the whole thing was like for $5000, 100% paid. Boy those were the good old days.

Anyway, I recently received a phone call and then a letter from an account that was discharged in the BK, I gave them the info during the phone call and the letter said I was lying!!! That I didn't have a bankruptcy. (Once I get my Pacer information I'm going to see if I can find it. I was terrible with paperwork back then) Also my husband and I are both getting dunning letters from collection agencies about Verizon bills and phone numbers that we can't even remember having. I'm just going to include everything and notes about it on my current BK information.

And from now on I'm going to be taking detailed notes on phone calls from collection agencies. Anybody know how to record from a telephone using a PC?

Here's the really embarrassing part, I used to work at Allied Bond and Collections out of PA (back when I was desperate for work). I couldn't do it for long and I sucked at it. I don't understand how anybody can do that job and sleep at night, it's so depressing and stressful. Sometimes I'll ask collectors if they hate their job **crickets**.

[Lindsay]

I have some zombie collectors call me on debts that are more than 20 years old. I don't even think some of them are really mine as I would have only been 15 when I got a Citibank Visa, unless they have the name or dates wrong. I have yet to have any of them reported on my credit report (although it wouldn't matter now as the credit is horrible). They aren't as persistant as collectors with a collectible debt and they mostly send letters of settlement.