Default Judgements And Zombie Debts
You get served with a lawsuit in Kentucky and some attorney and company you never heard of, is suing you after you filed bankruptcy for a debt that is 20 years old and for a debt you can’t remember. So you ignore it and they get default judgment. Bad idea. Because a default judgment is just as good as any other judgment and default judgments can be extremely difficult to overturn as it gets older. But Zombie debt collectors buy bad debts from credit card companies and then attempt to collect from people that have similar names often without enough documentation to prove that a debt even existed. This is a billion dollar industry in Kentucky where large mortgage companies, banks, and credit card companies sell charged off debts to companies that buy “uncollectible” debts for pennies on the dollar.
When Debt Collectors Are at Your Door
Why would someone purchase such debt. Answer: to collect the principle interest and attorney fees that often double or triple the debt from people that will repay just to stop the harassment. Often the Zombie debt collector has no proof that you even owe the debt but they will put it on your credit report. All the Zombie debt collector will have is just a computer record with a name, account number, and a balance. No contract between you and Chase bank or whatever the company was. No proof of your identity that it was you that signed for the debt, no record of what the charges were for or what payments were applied, no ability to breakdown the principal, interest, late charges, or any accounting of how the total balance was calculated.
Speak to Your Bankruptcy Attorney
The only way to win such lawsuits in Kentucky is to rely on you allowing a default judgment. If you fight such debts they have a difficult or impossible time proving that you owe the debt. But zombie debt buyers don’t care. Most people do not respond to lawsuits in Kentucky. If there you fail to answer the zombie debt will win by default judgment and may collect by garnishment attaching a home or it is possible for you to even go to jail for contempt and the failure to respond. Zombie debt buyers rely on your failure to respond. So, when you get served with a lawsuit, contact an attorney. Just because you were sued doesn’t mean that you owe the debt.