Zombie Debts After A Bankruptcy Filing


Over the last few years many Americans have been forced to file bankruptcy to eliminate their debts. Over the same period creditors have been selling bad debts to debt collection companies. This industry since the last downturn has become a multibillion dollar industry. The big banks and credit card companies sell debts that they charged off and can no longer carry on their books. The people who buy these debts paid only pennies on the dollar and try and collect on them. Recently, with the large number of Americans filing for bankruptcy, many of these zombie debts pop up after a bankruptcy discharge.

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What happens is some creditors will sell a debt prior to the person filing bankruptcy. The person won't know that the debt is now owned by someone else and when they file, the previous creditor will be notified. The bankruptcy filing will go fine and the person will receive their bankruptcy discharge. A few months later, the new creditor will start harassing the individual to collect on a debt that should've been discharged in the bankruptcy filing. Most debt collection companies use unscrupulous tactics to go after debtors. Usually they don't play by the rules and threaten people with jail time or other threats that are completely illegal. After filing bankruptcy, they don't know what to do and even though the debt should be discharged it is still coming back to haunt them. The best thing to do is to call the bankruptcy attorney that represented the person and have them contact the creditor to explain the situation. Sometimes, debt collectors will continue to try and resurrect the debt saying that they were not notified of the bankruptcy filing and are still able to collect on it. When this happens legal counsel will be the only way to stop this from continuing on.

As a new financial crisis is creeping up upon us, consumers need to keep an eye on their credit report to make sure one of these creditors doesn't come back to haunt them. At the beginning of 2013 it was reported that Americans filing bankruptcy is down and consumer debt is at all-time highs. It is just a matter of time before another 2007 financial crisis is upon us. Many experts believe that the debt American consumers and the government are continuing to ring up will create a financial disaster that will make the 1929 depression seem like the good old days. The driving force behind the creditors collecting on zombie debts is nothing more than corruption and dishonesty. They know what they are doing is immoral, but are looking for a loophole to cash in on a victim. The American consumer needs to take a proactive stance and if necessary call a bankruptcy attorney to go after these credit thugs. For those still having financial trouble, it might be time to clear the books using bankruptcy while it's still available to us.

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