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View Diary: Rolling Jubilee Hits $8,000,000 in Medical Debt to be Retired Uncollected. MORE UPDATES! (279 comments)

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  •  Is this the most benefit to debtors? (1+ / 0-)
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    jpmassar

    I'm waiting to hear some stories. Most folks who are so  overwhelmed by debt that those who are owed will accept 5 cents on the dollar have many debts  to a lot of different entities (hospital, doctor, credit cards, etc). Getting one forgiven does not solve the problem.  A clean slate through bankruptcy does.

    Could the same amount of money spent helping people file bankruptcy go a lot farther?

    .

    •  Bankruptcy is a lot harder to get than it used to (3+ / 0-)
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      jpmassar, jan4insight, Calamity Jean

      be.  The people owed the debts were pretty ticked that poor people were 'weaseling out' of paying debts, so they had their pet Congresspeople make it a lot tougher to file the sort of bankruptcy that actually gives you that 'clean slate'.

      •  No that hard if you are low income (0+ / 0-)

        You have to take a money management class and can't get rid of student loans but other debts do get erased in bankruptcy  if you have below average income.  The idea that bankruptcy doesn't work now is keeping people from using this fresh start option.

        I would bet the vast majority of loans sold for 5 cents on the dollar are owed by people with low incomes. That is why the holder of the loan is willing to pretty much give up. "The market" will pay 5 cents because the staff time to find the 10% to 15%  that is  collectible is worth it. When someone negotiates a pay off at twenty cents on the dollar, the entity that only paid  5 cents on the dollar is doing quite well, thank you.

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