Recently heard of a church purchasing $3.3 million in resident debt for 15k and then cancelling all of it.
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This sometimes also works for private persons.
I helped out an elderly guy who was close to retirement and didn’t have much income. He had about 10.000€ of dept at his ( private) bank for a longer priod of time ( about 10 years) but never paid money back. Then we set up a letter that due to a friend, who would be willing to lend him 3000€, he would be able to forward the money to the bank when they’d be willing to cancel the balance of 7000€ otherwise he would declare bankrupcy and they wouldn’t get a penny ever. They accepted and he’s now dept free.
Banks calculate different from how private people do. Every time, the dept has to be handled ( accouting, writing letters, costs for lawyers etc), it costs them money. So they calculate for example” 10 more years of trying to get everything back is more expensive than take the fast buck and forget about the rest”.
And this is the same reason, why this business exists.
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