I'm kinda interested in seeing how this works... I mean, okay, they buy X-thousand dollars worth of debt, and then not collect it. But do they then call the person whose debt it is and let them know they're off the hook?
Yes, that's basically it. It's EXACTLY like they're a collection agency, except instead of collecting they just say "Go ahead, we got this, you're out."
if the original creditors were prepared to accept the same terms from the original debtors, rather than from a third party who then hounds the crap out of the debtor for exorbitant profit, a lot might change about american culture/life.
The problem with that is that when that's the RULE, you can game the system and never pay your debts until you get bankruptcy fire sale rates without needing to declare bankruptcy.
Whereas in this case, the benevolent intercessor can choose their cases, and the possibility of abuse doesn't appear.
Also? The original creditor, when it sells your debt to a collector for 10%, *gets to write off the 90% as a loss*. Whereas they don't get to do that, legally, if they just tell you that you don't have to pay. (I think, but I'm not an accountant.)
Sorry I'm late, and the bearer of negativity, but:
They can only buy an agglomeration of a certain type of debt (I believe they intend to do medical debt) at a time, not individuals.
And, I asked them about this repeatedly, but, the IRS taxes forgiven debt like it was income, and I am unconvinced that the mere act of Jubilee not filing will prevent the IRS from pursuing it anyway. So, instead of an uncollectable debt that will eventually fall off an individual's credit history, that person conceivably could suddenly have a huge tax bill. And the IRS charges penalties and interest and can garnish your wages.
Not really a step up...I'm waiting to see and hoping I'm wrong: http://www.thedailybeast.com/articles/2012/11/14/debt-and-taxes.html
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(no subject)
Date: 2012-11-09 03:11 pm (UTC)(no subject)
Date: 2012-11-09 03:17 pm (UTC)(no subject)
Date: 2012-11-09 03:34 pm (UTC)(no subject)
Date: 2012-11-10 12:40 am (UTC)*shares this*
(no subject)
Date: 2012-11-10 01:37 am (UTC)(no subject)
Date: 2012-11-10 02:57 am (UTC)(no subject)
Date: 2012-11-10 12:04 pm (UTC)in the meantime, this is awesome.
(no subject)
Date: 2012-11-11 02:23 am (UTC)Whereas in this case, the benevolent intercessor can choose their cases, and the possibility of abuse doesn't appear.
Also? The original creditor, when it sells your debt to a collector for 10%, *gets to write off the 90% as a loss*. Whereas they don't get to do that, legally, if they just tell you that you don't have to pay. (I think, but I'm not an accountant.)
(no subject)
Date: 2012-11-11 08:41 pm (UTC)(no subject)
Date: 2012-11-20 08:27 am (UTC)They can only buy an agglomeration of a certain type of debt (I believe they intend to do medical debt) at a time, not individuals.
And, I asked them about this repeatedly, but, the IRS taxes forgiven debt like it was income, and I am unconvinced that the mere act of Jubilee not filing will prevent the IRS from pursuing it anyway. So, instead of an uncollectable debt that will eventually fall off an individual's credit history, that person conceivably could suddenly have a huge tax bill. And the IRS charges penalties and interest and can garnish your wages.
Not really a step up...I'm waiting to see and hoping I'm wrong: http://www.thedailybeast.com/articles/2012/11/14/debt-and-taxes.html