It is possible that a debt may no longer be legally collected because the applicable Ohio statute of limitations has expired. However, companies may still try to collect on that debt as it can be profitable to do so. This is because making a single payment on such a debt can restart the statutory period and allow a debt collector to take an individual to court.
Old debts that have been acquired by third parties are sometimes referred to as zombie debts. In some cases, these obligations have been acquired by multiple debt collectors at pennies on the dollar. Therefore, they may not have accurate information when they contact an individual seeking payment on that debt. While it is possible that an individual owes on a debt that he or she has forgotten about, it is also possible that the debt has been settled or otherwise taken care of already.
There are several options that individuals have after being contacted about a zombie debt. Those who owe the money and can pay it should do so as it could help their credit score and put an end to collector calls. Those who cannot pay a valid debt may wish to file for bankruptcy, but it may be a good idea to validate the debt prior to taking such an action.
People who are facing financial challenges may want to talk with an attorney about their options. In some cases, it may be a good idea to file for bankruptcy as it may put an end to debt collection efforts until the case is resolved.
