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Smart move - better to take the $10k than never to see the $100k! That's essentially what all these people should be doing.
by charlesdm 10y ago
Smart move - better to take the $10k than never to see the $100k! That's essentially what all these people should be doing.
- toomuchtodo 10y agoThis is exactly how all creditors work. You approach it as such: "I have X for you now (with X being about 1/10 of the total obligation). You either take that, or you get nothing." To be able to do this, you must have X, and you must be able to negotiate from a position of power (it has to be very difficult for them to collect).
- MrMullen 10y agoHow do you ensure that they will take X and wipe the loan instead of take X and then tell you that you still owe X x 10?
- toomuchtodo 10y agoSigned contract/agreement. Try to default on that and I'll have my attorney take you to court and report you to the Consumer Financial Protection Bureau. The protections afforded by the FDCPA [1] against debt collectors are significant (although, in my opinion, do not go far enough). [1] https://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act https://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices...
- charlesdm 10y agoYep. I had heard about it in private equity plays, i.e. a fund acquires a loss making business to turn around and force the lenders to write off 30% of their debt, but never with student loans. I've had success negotiating certain matters with the tax authority in a similar way, when dealing with unclear laws.