What Is Zombie Debt And Do I Have To Pay It?

Debt has a statute of limitations. Essentially, every state has its own statute of limitations when it comes to debts. In Ohio, the statute of limitations for most kinds of debt is 6 years. Once that 6 years has elapsed, a creditor can no longer initiate a lawsuit against you. The debt becomes time-barred or expired because it falls outside the statute of limitations.

Companies in possession of expired debts will sell the debts for pennies on the dollar to collection agencies. Why? Well, the collection agencies can attempt to recover the debt even though it’s outside the statute of limitations. They just can’t file a lawsuit against you to recover the debt.

One caveat here is that the debt can be rehabilitated. The statute of limitations runs out based on the last payment you made on the debt. So, if you make a new payment, you rehabilitate the debt. That means that the statute of limitations begins ticking down again, and the debt is valid for another 6 years. The debt collection agency can initiate a lawsuit against you if you make even a $1 payment on the debt. So, that’s something you never want to do.

What should I do if I’m contacted about zombie debt? 

Don’t talk to the debt collector over the telephone. All communication with the debt collector should be done in writing. You might end up saying something that accidentally harms your case. If they call, you should request the collection company’s address and end the conversation. All correspondence with the collections agency should be sent via certified mail with a return receipt requested to ensure that your documents have been received and by whom.

You will then want to send a certified letter to the collections agency disputing that you owe the debt within 35 days of their initial contact with you. In that letter, you need to make it plain that you do not owe the debt they say you owe, and demand that they provide proof that you owe the debt.

What should I do if I get sued? 

Hiring an attorney is a good place to start. You want to ensure that you’re protected against a potential judgment against you, especially if you know that you don’t owe the debt. It is unlawful for a company to initiate a lawsuit against an individual based on expired debt. If the company attempts to collect expired debt in this way, they can be sued under the FDCPA. You may not only be entitled to have the debt against you forgiven, but you may be able to recover damages related to false representations made by the collections agency. Our attorneys will pore over your case to ensure that your rights are respected.

Talk to an Ohio FDCPA Attorney Today 

The FDCPA provides debtors with specific rights against particular debt collection practices. If a debt collections agency violates these rights, they are liable for civil damages. Call the Columbus consumer lawyers at Kohl & Cook Law Firm, LLC today to schedule an appointment, and we can begin discussing your case right away.