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For $500k, your going to get sued. They're going to get something out of you and garnish your wages forever. You'll probably have to pay something even under ba

For $500k, your going to get sued. They're going to get something out of you and garnish your wages forever. You'll probably have to pay something even under bankruptcy, because of the bankruptcy changes under Bush. That debt will never get resold like this. If you have something smaller, maybe $5k, you might not get sued, depending on how difficult it is for them to sue you. Once the debt gets so old it's uncollectable (7 years), it might end up in one of these traded portfolios. There is generally no reason anyone would ever pay these debts and it's probably not even impacting your credit at that point. I'm guessing most of this debt is over 7 years old, or very close to that date.

potentialdebto2 8y ago
Right, the John Oliver portfolio was out-of-statute, meaning nobody was legally required to pay it, but if a collector can get the debtor to acknowledge or make any payments on the debt, it completely restarts (never acknowledge or agree to make payments on debt over the phone!). Looks like one would get garnished to the max for 3-5 years after (Chapter 13) bankruptcy. If I ever get seriously ill and faced high medical bills, the first thing I would do is take most of my non-exempt (basically, not retirement accounts) assets and buy a cheap house, since in my state (Texas) the entire value of your homestead is bankruptcy exempt. This is assuming I have the health to do so, of course. I have a high enough credit score and income that the hospital would assume that I could pay, and existing lines of credit to pay for out-of-pocket stuff. edit: you could really go nuts with the exemptions! Put in a pool, buy one of these [1], fine home furnishings etc. [1] https://www.abebooks.com/book-search/title/king-james-bible/first-edition/sortby/1/page-1/ https://www.abebooks.com/book-search/title/king-james-bible/...
- ikeboy 8y ago
  People have done this after being sued, moved to a state with protections and poured assets into a house.

potentialdebto2 8y ago

Right, the John Oliver portfolio was out-of-statute, meaning nobody was legally required to pay it, but if a collector can get the debtor to acknowledge or make any payments on the debt, it completely restarts (never acknowledge or agree to make payments on debt over the phone!). Looks like one would get garnished to the max for 3-5 years after (Chapter 13) bankruptcy. If I ever get seriously ill and faced high medical bills, the first thing I would do is take most of my non-exempt (basically, not retirement accounts) assets and buy a cheap house, since in my state (Texas) the entire value of your homestead is bankruptcy exempt. This is assuming I have the health to do so, of course. I have a high enough credit score and income that the hospital would assume that I could pay, and existing lines of credit to pay for out-of-pocket stuff. edit: you could really go nuts with the exemptions! Put in a pool, buy one of these [1], fine home furnishings etc. [1] https://www.abebooks.com/book-search/title/king-james-bible/first-edition/sortby/1/page-1/ https://www.abebooks.com/book-search/title/king-james-bible/...

ikeboy 8y ago
People have done this after being sued, moved to a state with protections and poured assets into a house.