Mike14 wrote:
Since JDBs buy debt at significant discounts, would it be possible to buy your own debt, then simply forgive it from youself and report it s paid to the OC? Would this be legal, and if so, how would one go about doing this?
It would cost you more than the debt is worth.
You may have to file as a biz owner in your state and/or your locality and file with estimated taxes, get a workman's comp policy on just yourself, get a commercial liability package, etc. Then you may have to be licensed as a CA, depending on the state and that may cost from $200 to $1000. If required, you may have to get a surety bond of $20k to $50k depending again on the state. Then you'd have to get a licensing agreement with each CRA and pay hundreds in monthly subscription fees each month. BTW, you may have to work for a CA from 1-5 yrs depending if licensing is required even before you can get a license. Of course you'd have to get fingerprints, criminal background checks, state training, etc which is required for most states.
Then you can go in business for yourself as a CA or JDB.
You'd have to bid on debts at auction from each OC or CA (Verizon once opened up on the process during one of many calls with them). As Athensguy said, you can't just buy one. You'd have to buy a lot or batch.
If buying from the OC, then you have to worry if the OC would continue to report as paid or not.
Boy, CAs sure do have to go through a lot of hoops.
