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Occupy movement is buying up debt and cancelling it


seabhcan

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Sep 3, 2007
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14,327
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?
 


TODevastated

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Oct 9, 2009
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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?
 

pierrepoint

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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.
 

dustin

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Nov 23, 2010
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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
 

mcdonald douglas

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Jul 26, 2009
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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.
 

nonpartyboy

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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..
 

Radix

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Aug 31, 2010
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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...?
 

Andycap

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Feb 22, 2012
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1,277
Debt is currently being sold in Ireland to distressed debt specialists. Check out costar.co.uk for details.

They are not in it for altruistic reasons. and it is more expensive than 1 p in the pound.
 

southwestkerry

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Aug 20, 2008
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In relation to the OP. The idea behind the buying up debt and cancelling it is an interesting one. I must follow it up a bit more before adding my two pennies worth.
 

james5001

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Oct 27, 2009
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So they've cleared $14k worth of debt?

By my calculations, a Klingon will be managing the Kilkenny Senior Hurling team by the time they have paid down the debt in the US.

Go Occupy!
So if it doesn't help everyone's problems then it should be ridiculed?
Go goosebump!
 
Joined
Aug 6, 2007
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22,910
Debt is currently being sold in Ireland to distressed debt specialists. Check out costar.co.uk for details.

They are not in it for altruistic reasons. and it is more expensive than 1 p in the pound.
Salvage specialists are the step beyond this.
 

james5001

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Oct 27, 2009
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Thanks for bringing that to my attention seabhcan.
 

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