The Attack Of The Zombie Debt After Filing Bankruptcy

The Attack Of The Zombie Debt After Filing Bankruptcy "Recently, there has been much discussion about the zombie pandemic and how to combat it. The term ""zombie"" has been tossed around carelessly and has now entered the financial system. Doomsday preppers have been preparing for the undead apocalypse over the past few years. After declaring bankruptcy, what should a debtor do if they are being assaulted by zombie debt? What is phantom debt? Let's begin by discussing the origins of Zombie debt. Almost anyone can incur a zombie debt, but in recent years, many insolvent individuals have seen this debt return long after the bankruptcy discharge. It can occur in a variety of ways, such as when a debtor has racked up multiple credit cards and kept deferring payment to the point where bankruptcy was required because the debt was no longer affordable or manageable. Due to nonpayment for many months, the majority of these accounts had been sent to collection. When accounts are turned over for collection, creditors will sometimes write them off and sell the debt to a debt buyer for fractions on the dollar. These debt purchasers will sell the debt to nationwide collection agencies, allowing them to collect on all of the debt.When filing for bankruptcy, the individual is required to identify all of their creditors and their current addresses so that the bankruptcy court can notify each creditor of the pending bankruptcy filing. During this period, some of these debts may have been sold and are no longer held by the creditor to whom the debtor originally owed. When the creditor receives notification from the bankruptcy court, they may not know who is responsible for the debt, so it falls through the gaps. So the individual filing for bankruptcy jumps through all the necessary hoops to obtain a successful bankruptcy discharge, believing that they are now debt-free and able to continue on with their lives. Technically, you are correct. However, the zombie debt buyer may not be aware of the bankruptcy; all they know is that the debt they possess is still owed. This may not become apparent until at least a year after the bankruptcy. When confronted with this situation, a person should contact their bankruptcy attorney for advice on how to proceed. If not, they should respond to the debt collector by sending them a copy of the bankruptcy discharge. The last thing a person should do is ignore a debt collection agency. The majority of these companies have been known to file litigation against debtors as part of their aggressive and sometimes unscrupulous debt collection strategies. If the debtor fails to respond to the lawsuit, the debt buyer can obtain a default judgment and convert an otherwise uncollectible debt into a current judgment, allowing them to submit a lien against the debtor's property and/or wage garnishment.Some zombie debt purchasers are aware that the debt is uncollectible, yet they continue to harass the individual following the filing of bankruptcy. They will attempt to extract a payment from the individual in exchange for their departure. In some states, paying an ancient debt will revive it. Some of these debts are no longer collectible due to the expiration of the statute of limitations. People dealing with undead debt must confront it head-on and not allow the debt purchaser to coerce them into doing something unnecessary. If this undead debt will not go away, it is time to retain legal counsel and pursue legal action against the debt buyer. There are laws in place to safeguard consumers from such conduct.
" - https://www.affordablecebu.com/