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Thread: Occupy movement is buying up debt and cancelling it

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    Politics.ie Member seabhcan's Avatar
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    Default Occupy movement is buying up debt and cancelling it

    Occupy Wall Street campaigners buy-up debt to abolish it - Telegraph

    Interesting concept.

    Individuals or companies can buy distressed debt from lenders at knock-down prices if it the borrower is in default or behind with payments and are then free to do with it as they see fit, including cancelling it free of charge.
    As a test run the group spent $500 on distressed debt, buying $14,000 worth of outstanding loans and pardoning the debtors. They are now looking to expand their experiment nationwide and are asking people to donate money to the cause.
    So it is possible to buy distressed debt at knock down prices. I thought such secondary debt markets were for various collateralized debt packets, rather than the debt of identifiable individuals.

    It raises the question - could you buy your own debt? If I went out and borrowed 100k and then refused to make repayments - that debt would become 'distressed'. The resale value of that debt would drop to as little as 1000 euro. Could I then just buy it at that price and keep the 99k?

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    Quote Originally Posted by seabhcan View Post
    Occupy Wall Street campaigners buy-up debt to abolish it - Telegraph

    Interesting concept.



    So it is possible to buy distressed debt at knock down prices. I thought such secondary debt markets were for various collateralized debt packets, rather than the debt of identifiable individuals.

    It raises the question - could you buy your own debt? If I went out and borrowed 100k and then refused to make repayments - that debt would become 'distressed'. The resale value of that debt would drop to as little as 1000 euro. Could I then just buy it at that price and keep the 99k?
    if only it were that simple we would all do it.

    in your specific case where would you get the 100k from? and what would you say it was for?

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    Quote Originally Posted by seabhcan View Post
    It raises the question - could you buy your own debt? If I went out and borrowed 100k and then refused to make repayments - that debt would become 'distressed'. The resale value of that debt would drop to as little as 1000 euro. Could I then just buy it at that price and keep the 99k?
    I don`t doubt this has probably already happened. Will probably come out somewhere at a future tribunal.

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    Politics.ie Member dustin's Avatar
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    Once they register a default against you for the alleged debt ,i guess you could buy it back from a collection agency for 10% of the alleged debt

    If you don't need credit for a few years its a good deal

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by dustin View Post
    Once they register a default against you for the alleged debt ,i guess you could buy it back from a collection agency for 10% of the alleged debt

    If you don't need credit for a few years its a good deal

    If you cancel your own debt could you not also take yourself off the default list?

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    Can't do this for personal debt BUT possible for national debt.

    This is what Vulture Funds do Vulture fund - Wikipedia, the free encyclopedia

    They buy up the debt and chase it down.

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    Barak Obama bailed out the American banks.He's a friend of Wall Street.Irish Labour voted to give taxpayer money to busted banks such as Anglo,Allied Irish.

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    Politics.ie Member nonpartyboy's Avatar
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    Quote Originally Posted by pierrepoint View Post
    I don`t doubt this has probably already happened. Will probably come out somewhere at a future tribunal.
    Especially in this country, case by case debt writeoff to me, means we will look after the people we know and cream everybody else..

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    Quote Originally Posted by seabhcan View Post
    Occupy Wall Street campaigners buy-up debt to abolish it - Telegraph

    Interesting concept.



    So it is possible to buy distressed debt at knock down prices. I thought such secondary debt markets were for various collateralized debt packets, rather than the debt of identifiable individuals.

    It raises the question - could you buy your own debt? If I went out and borrowed 100k and then refused to make repayments - that debt would become 'distressed'. The resale value of that debt would drop to as little as 1000 euro. Could I then just buy it at that price and keep the 99k?
    Dear oh dear, look what you have started seabhcan.

    Letting out industry secrets like that!

    Could you not have, you know, kept schtum about these things...?
    Heaven and Earth Meet in the Human Heart!

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by odie1kanobe View Post
    Can't do this for personal debt BUT possible for national debt.

    This is what Vulture Funds do Vulture fund - Wikipedia, the free encyclopedia

    They buy up the debt and chase it down.
    The Occupy movement claim to have found a way to do it for personal debt.

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