Anyone 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?
Because 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.
Well 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.
