I’ve run an email discussion list for many years for people and businesses within the industry I work, which is the voluntary and mutual settlement of unsecured debts in hardship situations (think of it as a bankruptcy alternative).
What follows is a post from this morning, and my response.
…wouldn’t it be nice if we could get a law on the books where:
…If a creditor has a client in a particular state, then that creditor is FORCED to deal with the debt settlement company on behalf of the customer. i.e., Citibank, MBNA, Bank of America would be forced to deal with us if the client so chooses. I believe this is the level of law that we should be trying to push.
Be careful what you ask for.
I know it’s tempting to use the omnipotent power of the state to “FORCE” creditors to deal with you, but I’d never support such an immoral abrogation of the freedom of association (and, I, unlike the “Supreme” Court, don’t make meaningless, logically untenable distinctions between the rights of individuals and the rights of individuals organized into entities like proprietorships, partnerships, and corporations).
Moreover, I believe it’s an impractical measure that’s more likely to cause resentment than anything else. While the state can make Citibank give you the time of day, it can’t make them respect you or find any value in what you do. It’s up to you to produce that value.
See, the state can destroy any life or property it wishes, with or without reason, but it’s wholly incapable of producing, creating a single genuine value in the world. It can only take (steal) the values produced by individuals and businesses, transfer them to someone else, and fake as though they are producing values. In reality, they are parasites: top-to-bottom and wall-to-wall.
So, ultimately, there’s no getting around persuading creditors that settlement is in their best interest.