Zombie Debt

Mon, Mar 2, 2015

Bankruptcy, Debt Mitigation

 Some rights reserved by jamieanneFiling bankruptcy should rid you of many of your bills if it is filed correctly. Some debts are never erased by bankruptcy, however. And some bills that should be erased aren’t being erased—thus the term zombie debt.

Some debts that are not erased via bankruptcy include the following, depending on the type of bankruptcy you file:

  • Taxes
  • Student Loans
  • Child Support and Alimony
  • Other various debts that came about in specialized ways

However, there are still other types of debt that we often see not being erased. Zombie debt gets its name because it should have been erased by bankruptcy but managed to stay alive somehow and come back to haunt you. For some reason, you cannot get this debt to go away…it keeps coming back.

Some banks and other creditors are being blamed for doing this on purpose, because those looking to rebuild their credit or trying to make a purchase that requires financing need to have a good credit report. Sometimes the debtors get tired of fighting the bill and end up paying it off, even when they shouldn’t have to. This is because the debt is not being erased as it should be by the bankruptcy.

This can happen due to a paperwork error, technicalities etc. You should keep an eye on your credit report and other reporting sources to make sure anything that should have been erased by the bankruptcy is actually removed.

These zombie debts can keep your credit score poor and prevent you from rebuilding your life.

Attorney Christopher D. Smith, Sr. is designated a Board Certified Consumer Bankruptcy Lawyer by the American Board of Certification.  SmithLaw is located in Lakewood Ranch, Florida.  Attorney Smith concentrates on bankruptcy, civil litigation, probate, estate planning, and elder exploitation cases in the Sarasota and Bradenton area.  Call 941-202-2222 to learn more.  SmithLaw offers free consultations in certain areas, including consumer bankruptcy, probate, and personal injury matters.

Image: Some rights reserved by jamieanne

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