Zombie Debt: What it is and How it Works | Bankrate
fizkes/Getty Images: Illustration by Issiah Davis/Bankrate Table of contents What is zombie debt? How zombie debt works Common types of zombie debt Tricky zombie debt collection tactics How to protect yourself from zombie debt Key takeaways Zombie debt refers to old or expired debts you’ve either forgotten about or never knew about that debt collectors try to resurrect and collect. The most common types of zombie debt include discharged or settled debts, time-barred debt (debt that is past the statute of limitations for collecting), accounts that have fallen off your credit reports and debt that doesn’t belong to you.
To best protect yourself, research the debt and request a debt validation letter. Check your state’s laws to research your rights against zombie debt, including statute of limitations laws, so you do not accidentally reactivate expired debt. Zombie debt can feel like it rises from the grave, appearing out of nowhere to haunt your credit report or financial situation.
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