If you have ever defaulted on a credit card and had the debt “charged off” by the original creditor, you may fall prey to what many refer to as zombie debt. What happens after the debt is charged off by the original creditor is something right out of Night of the Living Dead. The debt is then purchased by debt collectors for pennies on the dollar, with little or no documentation of the debt. The debt collector, who is usually a debt collection law firm, then sends collection letters and uses other collection efforts. Eventually, the debt collector usually files suit and many people assume they have no defense and choose to not defend the case and end up taking a default judgment, which can lead to garnishment of wages and judgment liens being placed on their property. When defended and challenged by an attorney who is knowledgeable in this area of law, the debt collector is usually unable to produce even the most basic documents or evidence to show that they can enforce the debt in a court of law. Apparently, there are also debt collectors who specialize in buying up debts that have been discharged in bankruptcy and then attempt to collect on it from unsophisticated debtors even though this act is clearly a discharge violation under the bankruptcy code and could be pursued by the debtor.
