Current Events > Can you arrange to have your debt split and sold/auctioned?

(+) Yeah! (+)

Say for example, someone wanted to run for office. Would it be possible for them to arrange a massive loan, under the pretense of immediately "commodifying" the debt to allow it to be split/portioned off and sold/auctioned to individuals?

Basically, you would have the potential for a politician literally bought and owned by his constituents if everything was possible. You are the company and your constituents would be the shareholders basically.

Like the normal level of political bribery/ownership, but with transparency/everything visible.

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collection agencies are just that: they buy debt

xXfireglzXx posted...

Basically, you would have the potential for a politician literally bought and owned by his constituents

this already happens except the "constituents" are gigantic corporations

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Giant_Aspirin posted...

collection agencies are just that: they buy debt

this already happens except the "constituents" are gigantic corporations

Yeah, I'm asking if this could be done with the intent of selling your debt to actual people and not just things recognized as people.

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This is the whole point of treasury bills and savings bonds.

Questionmarktarius posted...

This is the whole point of treasury bills and savings bonds.

Yeah, but that's just an amalgamation of debt with no individual tied to it, right? I'm wondering if there's a way to pre-arrange having your personal debt you are going to accrue be distributed in a similar manner.

Basically, if I wanted to auction off 1/100,000th of my debt to an individual, there's no mechanism in place to do so, is there?

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There is not because you are not the one who controls that end of your debt. The person/organization loaning you the money would have to decide to do that.

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Questionmarktarius posted...

This is the whole point of treasury bills and savings bonds.

That's the national debt. TC is talking about an individual person.

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A candidate could theoretically sell "shares", but that's openly admitting to bribery.

xXfireglzXx posted...

Yeah, but that's just an amalgamation of debt with no individual tied to it, right? I'm wondering if there's a way to pre-arrange having your personal debt you are going to accrue be distributed in a similar manner.

Basically, if I wanted to auction off 1/100,000th of my debt to an individual, there's no mechanism in place to do so, is there?

There's not no mechanism but you're not the one who owns your debt. You'd have to negotiate with the person who does who is often not your lender to sell it to the people you want and they do not have an incentive to give them a good deal especially if you're an elected politician now.

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Tyranthraxus posted...

There's not no mechanism but you're not the one who owns your debt. You'd have to negotiate with the person who does who is often not your lender to sell it to the people you want and they do not have an incentive to give them a good deal especially if you're an elected politician now.

But if you were to manage to get the debt holding party to consent before the accrual of the debt there's no additional legal barrier?(outside of the potential of being accused of bribery)

Is there any feasible means of determining who would hold your debt prior to accruing it?

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xXfireglzXx posted...

Basically, if I wanted to auction off 1/100,000th of my debt to an individual, there's no mechanism in place to do so, is there?

This is effectively just refinancing.
It's no different than me loaning you $5 that you use to pay towards some other debt.

xXfireglzXx posted...

But if you were to manage to get the debt holding party to consent before the accrual of the debt there's no additional legal barrier?(outside of the potential of being accused of bribery)

Is there any feasible means of determining who would hold your debt prior to accruing it?

You are better off negotiating with your lender as your lender is the initial owner of your debt. They usually sell it within a week to one or more third parties. If you can get a list of interested buyers and work out the details with your lender ahead of time before you get the loan then it'll probably work.

You'd have to be pretty affluent already for anyone to entertain this though, and your lender is probably going to want to be paid upfront.

You're better off using a loan to create a holding company and then privately sell shares to constituents.

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