Good point, patio11. If debtors don't pay back their debt after after a certain time period, they are supposed to report it as income, but I doubt very many do

Good point, patio11. If debtors don't pay back their debt after after a certain time period, they are supposed to report it as income, but I doubt very many do. Setting up an organization like this puts the onus on the organization to file the 1099-C's