We often have clients that have settled a credit card debt by paying something less than the full balance. Then a few years letter a debt buyer comes after them for the amount of the debt that they didn’t pay off. It would seem that is not legal but it can be. The debt buyer may have paid the credit card company 5 cents on the dollar to buy the debt that wasn’t paid off, then they come after you for the full amount, knowing that if they only get 50 cents on the dollar out of you, then they make a profit of 45 cents on the dollar. These debt buying companies will have different names than the original credit card debt. Many of them have LLC after their name. This type of debt is also known as Zombie Debt because you thought the debt was gone but it seems to come back to life.
Bankruptcy may be a good option to deal with this type of old debt. Give us a call today at Kentucky Bankruptcy Attorney John Rogers to schedule a free, no obligation phone appointment to see if bankruptcy is right for you.