Let's say I owe 100k in CC debt. The cc company goes to sue. Correct me but civil trials take months, more.for low priority crap like debt collection. Just before the trial date, I find one of the numerous debt consolidation companies which buys the debt for a relative small fee, and a few percent markdown on debt. Then once the former trial date passes I stop paying the consolidation company, and the whole process repeats infinitely with incrementally smaller debt loads.

Where do you see this failing?

  • 2
    Smells like intentional fraud to me, and that's a criminal issue... – user4210 Jun 28 '19 at 9:58
  • 3
    @Moo Agreed. If someone figured out what you were doing, you could be prosecuted for grand theft or credit card fraud and would probably be convicted and sent to prison for a decade or more. – ohwilleke Jun 28 '19 at 21:26

First of all, this assumes that the debt consolidation firm would be willing to buy, and the CC company willing to sell. With a trial already scheduled, this might well not be the case.

Secondly, when (if) the debt consolidation firm buys the debt, they buy the rights of the seller. In many states the trial could go forward, with the debt consolidation firm substituted as plaintiff. It is not automatic that a sale of the debt would postpone the legal case.

Certainly if this happened once, it seems very unlikely that a second debt consolidation firm would buy the debt from the first.

And as the comments by Moo and ohwilleke suggest, such a scheme would be fraudulent and criminal, if discovered. It might also constitute contempt of court for intentionally abusing the process of the court. Not a good or safe idea.

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