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If you had the right of first refusal to buy your own debt for pennies on the dollar, what would be the point of paying back any debt at all, ever? But then le
by daemin 13y ago
If you had the right of first refusal to buy your own debt for pennies on the dollar, what would be the point of paying back any debt at all, ever?
But then let's say you could big on for the right to collect your own debt along with the other debt collectors. That would just bring the price up to whatever you're willing to pay plus a premium, or the whole debt in itself.
Since you could pay $1,000 for a $20,000 debt, the collector could offer $1,500 to collect that debt, knowing they could already get $1,000 from you towards it. That would continue until either you have shown that you could pay back the debt yourself, or you'd be outbid by one pissed off collector that would make your life more hellish.
- mattm 13y agoAnyone can declare bankruptcy and have their debts wiped away. What is the point of paying back any debt at all? Why not just run up as much debt as you possible can and then just declare bankruptcy?
- daemin 13y agoBecause I imagine declaring bankruptcy would involve a lot more paperwork and hassle then just buying your debt at pennies to the dollar? That and in bankruptcy all your remaining assets would be distributed to pay your creditors.
- nl 13y agoBecause I imagine declaring bankruptcy would involve a lot more paperwork and hassle then just buying your debt at pennies to the dollar? So paperwork is the reason no to go bankrupt? That and in bankruptcy all your remaining assets would be distributed to pay your creditors. If you have remaining assets then presumably some other creditor will offer more money to take on the debt. The only difference now is that you get first refusal.
- daemin 13y agoWell I would assume going bankrupt would ruin your credit rating far more than just purchasing your debt at pennies to the dollar. The paperwork is an extra hassle that wouldn't apply in the case where you buy a contract from your lender. Even if you could buy your debt from your lender via the first right of refusal that might bring up fraud charges against you, since you fraudulently deprived the lender of money rightfully owing.