Zombie Debt and Bankruptcy in Maryland

 Posted on August 08, 2025 in Debt Resolution & Settlement

Perhaps you thought your debt was long gone because it has been years since you heard from the original creditor. Then a debt collector comes knocking to collect on what is known as "zombie debt." In Maryland, the term "zombie debt" refers to old, sometimes expired, even time-barred debt that a debt buyer attempts to revive. These debts are often for credit cards, personal loans, or medical bills that suddenly come to life after years of silence.

Even if the debt is no longer legally enforceable, you may still be under pressure from a debt collector to pay and possibly even threatened with a lawsuit. Depending on the amount of the zombie debt, as well as whether you are having trouble paying other current debts, filing for bankruptcy may offer some relief. A Charles County, MD bankruptcy lawyer can help you determine whether filing for bankruptcy is right for you.  

How Do Debt Buyers Use Zombie Debt?

Zombie debt may originate from previously settled or discharged debt or debt buyers purchasing old debts. However, it can also occasionally result from fraud or identity theft. Debts are often sold to third-party debt collectors for mere pennies on the dollar.

Regardless of whether the debt is time-barred or legally enforceable, these debt collectors employ tactics like threatening legal action, suing consumers who are unaware of their rights, and tricking consumers into restarting the statute of limitations by making small payments.

Maryland’s statute of limitations is usually three years for unsecured debts. The clock starts from the time of the last activity or the last payment. Once the statute expires, creditors are no longer legally allowed to sue but can still attempt to collect.

How Does Bankruptcy Handle Zombie Debt?

Once you file for Maryland bankruptcy, an automatic stay is issued that stops all collection efforts immediately, including zombie debt. Debt buyers are legally barred from reviving or collecting on a discharged debt following bankruptcy.

Once the automatic stay takes effect (and after the bankruptcy is complete), debt buyers are prohibited from threatening the debtor with a lawsuit. They may not contact the debtor, write letters requesting payment, or engage in any other form of communication.

Should a creditor or debt buyer attempt to collect on a debt that was discharged in bankruptcy, there are serious consequences. These consequences can include fines, damages awarded to the debtor, and contempt of court charges.

When Can Zombie Debt Hurt You?

Zombie debt can become a problem if you restart the statute of limitations by doing any of the following:

• Failing to assert your legal defense that the debt is time-barred because the statute of limitations has run out
• Agreeing to make a partial payment and following through with that agreement
• Promising in writing to repay the debt
• Agreeing to monthly payments until the debt is paid
• Acknowledging the debt in any way

If you are contacted by a debt buyer about a debt, do not acknowledge that you owe the debt until you have verified the age of the debt to see whether it remains enforceable. If you have already gone through bankruptcy, make sure you keep all the records associated with your bankruptcy discharge, as well as any prior records for this particular debt.

Before responding to a collection notice, consult with a knowledgeable bankruptcy attorney. Always exercise caution when receiving phone calls, emails, and debt settlement offers. Since zombie debt is bought and sold behind the scenes, it can sneak up on you, so knowing your rights is extremely important.  

Contact a Prince George’s County, MD Bankruptcy Lawyer

Having creditors dunning you for money is bad enough, but when debts from many years ago suddenly resurrect, your financial future can seem untenable. You need the relief that bankruptcy can bring, giving you a fresh financial start and hope for your future.

A highly skilled Bowie, MD bankruptcy attorney from Bloc One Services, LLC is ready to help you achieve this financial reset. Attorney Blocton provides the local community with quality legal services at a fair price. As "The People’s Attorney," she is relatable and compassionate. Call 240-200-0076 to schedule your free initial 30-minute consultation.