achelois
Well-Known Member
Joined: Dec 19, 2010 9:55:44 GMT -5
Posts: 1,479
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Post by achelois on Feb 13, 2011 16:33:33 GMT -5
No, simply defaulting on a mortgage isnt illegal or necessarily fraudulent. Neither is defaulting on a cc.
What I consider especially unethical is deliberately buying a second house( or charging on the cc) KNOWING that as soon as you obtain the second house(or the education) you wil stop paying on the First debt.
Intent. You--the general you--are manipulating the system to screw over whoever lent you a large sum of money. You CAN pay but you WON'T-- for personal profit.
Is it legal? Apparently so in some places, like the nonrecourse states. Is it fraud? I consider to be although it may not meet a legal definition since anyone planning to do so is certainly not going to admit it except on an anonymous message board until after they get that second house and successfully default on the first.
I cant see any difference between planning to get an education while knowing you are going to default on the cc versus getting a second house while knowing you will default on the first mortgage.
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Deleted
Joined: May 3, 2024 12:43:39 GMT -5
Posts: 0
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Post by Deleted on Feb 14, 2011 8:22:21 GMT -5
It can be done. And you don't need to file bankruptcy in order to not pay back your CCs. Just don't pay them. They'll default, but you will hardly get sued for CCs unless they are of a high dollar value. Most companies will just write it off. Actually this is not always true. My brother has been sued by several credit card companies and have had his wages garnished by the credit card companies. He had several cards with only about $2,500 balance on them at most. I know because I was getting his bill collector calls and then he called me and asked me to borrow money to file bankruptcy. I told him a big fat NO since it was his second time filing.
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happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
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Post by happyscooter on Feb 14, 2011 8:29:36 GMT -5
Snerdley, are you playing 'Devils Advocate'?
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michelyn8
Familiar Member
Joined: Jul 25, 2012 6:48:24 GMT -5
Posts: 926
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Post by michelyn8 on Feb 14, 2011 9:00:58 GMT -5
LOL, that reminds me of Original Kings of Comedy when DL Hughley was talking about bill collectors: Bill collector: "so, Mr. Hughley, when can we expect payment?" DL: "you can EXPECT payment anytime you want. Let's pick a date - we'll both be surprised together!" That's kind of like in the old Jeff Foxworthy routine when he talks about the repo man coming to take his car for non-payment. The repo man asks for the money which Jeff didn't have but then asks if he can't just write a check. He gets the lightbulb over his head and tells him, sure, I can write a check. Of course that didn't mean the check would be good, but he could definately write one for the guy.
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michelyn8
Familiar Member
Joined: Jul 25, 2012 6:48:24 GMT -5
Posts: 926
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Post by michelyn8 on Feb 14, 2011 9:06:17 GMT -5
Just pointing out the obvious. My degree is long paid for. But, one could use their cc's and certainly not 'intend" to go bankrupt. Most people dont' intend to go bankrupt. But, I see no reason why you couldn't systematically take cash advances and then when your credit house of cards collapses, wipe out and not pay that debt too. It only makes sense. Snerd, what you're suggesting "could" be done. One would just have to take the cash advances on the CC's and pay off the student loan debt. Then make a "good faith" effort to pay the CC debt, say, by making the minimum each month. Then as interest accrues, the minimum's increase and it becomes harder to keep the CC's current leading you to file bankruptcy after a year or two of effort to pay the CC's and other debts. When bankruptcy is filed, they generally look back at your previous year's inflow/outflow to determine where you were spending your money, if you had put one debt over another (such as paying off parent before CC - can require parent to give court that money to give to creditors), and any assets you can liquidate to pay creditors. If you take the advances with the intent to file bankruptycy in the future, I would consider that fraud. But if you do it to honestly try to improve your financial situation (ie: CC has lower interest rate than SL's), suffer a job loss, and then have few options other than bankruptcy, then that's another story.
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