Okay, say I'm in debt to BigHospital for my cancer treatments. I only owe $10K (ha!) and discharging this debt in bankruptcy is something I either couldn't afford or otherwise was unable to accomplish.
I've managed to avoid paying the debt collectors for whatever reason, and I have this low value debt out there. It's par value might be $10k, but it's sold to Rolling Jubilee for $500. Rolling Jubilee discharges this debt.
In practical terms, my credit is already shot. I wasn't able to pay off this debt anyways, so it's not as if I have more money in my pocket. Sure I might be able to rebuild my credit a bit faster depending on how Rolling Jubilee reports the handling of this debt etc etc. Maybe not. Even if it persists on my credit score, rebuilding credit isn't as hard once you get a decent steady job. If I don't have that, I have no business getting more credit, no?
The old rules that you say no one wants to play by are still there at the end of the day.
Oh, and "hey can count on their fellow citizens to help them out when they are down on their luck" doesn't seem to be the very definition of social capital from your link.
I've managed to avoid paying the debt collectors for whatever reason, and I have this low value debt out there. It's par value might be $10k, but it's sold to Rolling Jubilee for $500. Rolling Jubilee discharges this debt.
In practical terms, my credit is already shot. I wasn't able to pay off this debt anyways, so it's not as if I have more money in my pocket. Sure I might be able to rebuild my credit a bit faster depending on how Rolling Jubilee reports the handling of this debt etc etc. Maybe not. Even if it persists on my credit score, rebuilding credit isn't as hard once you get a decent steady job. If I don't have that, I have no business getting more credit, no?
The old rules that you say no one wants to play by are still there at the end of the day.
Oh, and "hey can count on their fellow citizens to help them out when they are down on their luck" doesn't seem to be the very definition of social capital from your link.