First and foremost, demand proof from the bill collector that you actually owe the debt. They are legally obligated to provide such proof, usually within 30 days. If they can't prove you owe the money, you are probably home free.

     This happened to me a few years ago, when a bill collector attempted to collect monies for a bill I had long since paid off. When they could provide no proof of the debt, I promptly informed them that under the federal Fair Debt Collections Practices Act they could be subject to a $100,000 civil penalty plus fraud and harassment charges if they continued to try to collect a non-existent bill. I never heard from them again.

     Generally, if the claimed debt is less than a few thousand dollars and over five years old, it has probably been written off by the creditor long ago. Also in many states, the statute of limitations for debt collection is just two years, so if the claimed debt is over two years old and there is no court judgment against you, you are again home free.

     If someone does attempt to collect what you think is zombie debt from you, also check your credit reports to make sure the bill collector hasn't informed them. Even if the debt was legitimate and previously in your credit record, claiming it again, a second time, would constitute misrepresentation, and should be corrected by the credit reporting service.

     The three major credit reporting agencies are:

     If you do owe the debt, by all means pay the legitimate creditors, but don't get stuck paying zombie debt.

To view back issues of Jarret Wollstein's Towards Liberty, Click here.