Tips to Defend Yourself Against Zombie Debt

Even when debt should be dead and gone, debt collectors may try to revive it. Zombie debt is debt you don’t legally need to pay. It’s dead. It’s gone. But someone is trying to bring it back to life and collect it from you. This term most often refers to old, unpaid debt that is past the statute of limitations. 

The statute of limitations is the amount of time a debt collector has to sue you for unpaid debt, and it varies depending on where you live, the type of debt, and the contract you signed. If you’re not careful, you could accidentally restart the clock on the statute of limitations by making a payment or acknowledging you owe it. 

Are you getting calls about old debt? This guide covers how to figure out if the debt is no longer valid, ways zombie debt can affect you, and how to get debt relief for legitimate debt.

When Does Your Old Debt Die?

Old debt expires when the statute of limitations runs out and debt collectors can no longer sue you to collect the balance. 

To be clear, the debt is always yours. The only thing that dies is the creditor’s opportunity to win a judgment against you in court.

The time limit on suing you for a debt varies from state to state. It also depends on the type of debt.

Here are the basics on how a statute of limitations works:

• The time that a creditor has to collect a debt varies. It ranges from two to 20 years, but in most cases ranges from three to six years. 

• Certain debts may have a longer statute of limitations than other types of debt, like a vehicle loan versus credit card debt.

• The contract you sign with a creditor could include statute of limitations rules from an entirely different state than where you or your creditor are (this may appear in a “Choice of Laws” clause on your contract).

• The statute of limitations normally starts when you miss a payment. For example, if you miss a payment on January 1, 2025, and the statute of limitations is three years, then the statute of limitations runs out on January 1, 2028.

If a debt collector contacts you about an old debt, you could look through your original contract or agreement to see which state’s statute of limitations rules apply to the debt in question. After you review your contract and find out which statute of limitations you agreed to, a quick internet search could help you figure out if your old debt has expired.

If you no longer have your original contract, you could ask the debt collector to provide it when they validate the debt.

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Types of Zombie Debt

An expired statute of limitations isn’t the only thing that makes a debt die. The different kinds of zombie debt you could encounter include:

• Debt that is time-barred—past the statute of limitations

• Debt you discharged in bankruptcy

• Debt you already settled with the creditor or a debt collector

• Fraudulent debt caused by identity theft.

With any type of debt, it’s important to keep accurate records. For example, if you discharge debt in bankruptcy, hang on to the debt discharge paperwork. If you settle a debt with a collection agency, get the agreement in writing, and keep a record of your payment.

Debt collectors sometimes go after old debt. When you have the necessary paperwork, you can prove that it’s zombie debt.

How Zombie Debt Can Affect Your Credit

While you’re not legally responsible for zombie debt, it could still impact your credit score. Most negative information can remain on your credit report for up to seven years, regardless of the statute of limitations. As long as an unpaid debt is on your credit report, it could lower your credit score.

The same is true with debt you discharge in bankruptcy. The debt can stay on your credit report for up to seven years. Also, bankruptcy can stay on your credit history for seven to 10 years, depending on the type of bankruptcy you file. Fortunately, the older the negative information is, the less it impacts your credit score.

Zombie debt can also be due to identity theft. To make sure identity theft isn’t affecting your credit, check your credit report at least once a year. You can get a free credit report up to once a week at AnnualCreditReport.com. If you find any mistakes or suspicious debts, contact the creditor and file a dispute online with the credit bureau that issued the credit report.

Debt Collectors Can Still Chase a Dead Debt

Creditors and debt collectors may contact you about a time-barred debt. The legality of this depends on where you live. In some states, it’s illegal to pursue a debt that’s past the statute of limitations. In other states, debt collectors can still try to get you to pay, even if the debt is expired.

Whenever a debt collector contacts you, request written verification of the debt. You can also request that the debt collector not contact you anymore, especially if the statute of limitations has run out.

It’s illegal for a debt collector to sue you over a time-barred debt, but this could still happen—debt collectors don’t always have all the information on when the debt expired. In this situation, you can let the judge know that the debt is past the statute of limitations. Bring proof of your last payment toward the debt so the judge can verify how much time has passed since then. If you have questions about your legal options on an expired debt, contact a licensed legal professional in your area.

What Can Resurrect Zombie Debt?

If you pay anything toward zombie debt, or even if you just admit to owing the debt in writing, you could reset the clock on the statute of limitations. The exact rules depend on where you live.

For this reason, be very careful when dealing with debt collectors. Always have the debt collector send proof of the debt first, and then check if it’s within the statute of limitations yourself. Don’t make a payment or admit anything, or you could find yourself back on the hook to pay a zombie debt.

Get Help Attacking Your Debt

One way to make sure a valid debt stays in your past is by paying it off. But that doesn’t mean you have to pay on someone else’s terms. Freedom Debt Relief is here to help you understand your options for dealing with your debt, including our debt relief program, which could help you resolve your debt faster and for less than you currently owe. Our Certified Debt Consultants can help you find a solution that will put you on the path to a better financial future. Find out if you qualify right now.

Editor’s Note: This post has been revised from the original to include updated and more specific information regarding the laws on expired debt. Please note we are not providing legal advice of any kind in this post. We encourage readers to seek an attorney’s help with legal questions or actions about their debt—zombie or otherwise.