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Not true, it's a very savvy move. You're gambling with someone else's money-- credit card debt can be discharged in bankruptcy. You don't lose your house or yo
by jstarfish 9y ago
Not true, it's a very savvy move. You're gambling with someone else's money-- credit card debt can be discharged in bankruptcy.
You don't lose your house or your shirt, and the only real consequence is poor credit for a few years.
And if bitcoin goes up? Pay it off, keep the profits...you still win.
- celticninja 9y agoIn a bankruptcy that was for personal debt such as credit cards surely your house as an asset can be sold in the event of a bankruptcy?
- Phlarp 9y agoPerfect play for the van dwelling SV crowd (or renters anywhere). What are they going to put a lien on when the most expensive thing you own is a macbook pro?
- jstarfish 9y agoNot if it's your primary residence. Your summer home or a rental property, sure.
- celticninja 9y agoWhere is this? In the UK and from what I could see in the US it would be included.
- jstarfish 9y agoThe US, through the provisions of the bankruptcy homestead exemption. Though having just looked into it again, they only allow you to retain up to a certain amount of equity in your primary residence-- anything more than that (or other properties you own) is considered an asset that can be leveraged to pay back your debts, as you suggest. So someone with a cheap house or little equity could still Bain Capital themselves with Bitcoin, declare bankruptcy and start over while avoiding homelessness. But if you're 90% of the way through a half-million-dollar mortgage then yeah you'll have a lien placed on the property. http://www.alllaw.com/articles/nolo/bankruptcy/homestead-exemption.html http://www.alllaw.com/articles/nolo/bankruptcy/homestead-exe...