Zombie Debts After A Bankruptcy Filing

Zombie Debts After A Bankruptcy Filing "Many Americans have been forced to declare bankruptcy in recent years in order to eliminate their debts. During the same time period, creditors have sold problematic debts to debt collection agencies. This industry has become a multibillion dollar industry since the last recession. The major banks and credit card companies sell delinquent debts that they have written off and can no longer account for. People who purchase these debts for fractions on the dollar attempt to collect on them. Due to the rising number of Americans filing for bankruptcy, many of these ""zombie"" debts have begun to reappear following a bankruptcy discharge.Some creditors will sell a debt prior to the individual applying for bankruptcy. The person will be unaware that the debt is now owned by someone else, and the previous creditor will be notified when they file. The bankruptcy filing will proceed without incident, and the individual will receive a bankruptcy discharge. A few months later, the new creditor will begin harassing the individual in an attempt to collect a debt that should have been discharged through the bankruptcy filing. Most debt collection agencies employ unethical methods to pursue debtors. Typically, they do not follow the rules and threaten individuals with prison time or other illegal threats. After registering for bankruptcy, they do not know what to do, and despite the debt being discharged, it continues to haunt them. The best course of action is to contact the person's bankruptcy attorney and have them contact the creditor to explain the situation. Sometimes, debt collectors will continue to attempt to revive the debt, claiming that they were not informed of the bankruptcy petition and are therefore still able to collect. When this occurs, only legal counsel will be able to prevent this from continuing.As a new financial crisis approaches, consumers must monitor their credit reports to ensure that none of these creditors comes back to torment them. At the start of 2013, it was reported that the number of Americans declaring bankruptcy has decreased, while consumer debt has reached all-time highs. It is only a matter of time before another financial crisis similar to 2007 occurs. Numerous specialists believe that the continued accumulation of debt by American consumers and the federal government will result in a financial catastrophe comparable to the Great Depression of 1929. Corruption and dishonesty are the propelling forces behind creditors' efforts to collect on debts owed by zombies. They are aware of the immorality of their actions, but are searching for a way to exploit a victim. To pursue these credit criminals, American consumers must adopt a proactive stance and, if necessary, contact a bankruptcy attorney. For those still experiencing financial difficulties, it may be time to file for bankruptcy while the option is still available.
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