Does anyone understand the mechanics of the People's Bailout?

[OneGrassRoot]

You know, the amazing Rolling Jubilee idea by Strike Debt, an offshoot of OWS?

Here's one of many articles about it, in case you've missed it altogether: http://www.businessinsider.com/why-occupys-plan-to-cancel-consumer-debts-is-brilliant-2012-11


I really want to understand precisely how this can be done. What is required to be able to buy debt like this? I see articles say individuals can even do this, but don't you need to incorporate as a debt consolidator or something official like that?

It's my understanding that you can't target WHOSE debt is forgiven; you can only target the type of debt. For now, the Rolling Jubilee is targeting student loans and medical debt.

If you understand how this process works, do you know if there is a way to target LOCATION?

For example, target all student loan debt in a certain zip code or state or something?

I'll research this further but, as usual, I tend to post here first -- before beginning a Google search -- because of all the brilliant people, in case anyone has the answers.

Also, while most of us LOVE this whole concept, questions have been raised about the transparency of the bank involved in the process. Have any more details emerged in that regard in the last few days?

I've always been an OWS fan. Once again, they're forging a new way.

Gracias!

[HiPointDem]

1. according to this, you can buy by zip code:

The Rolling Jubilee project and the Strike Debt initiative aim to leverage the debt collection system as a tool for direct action and mutual aid. We buy defaulted debt for pennies on the dollar, just as debt collectors would, but instead of attempting to collect it, we abolish it. For every dollar of defaulted debt we buy, $20 of debt will be abolished. This program launches on Thursday November 15th with a The People’s Bailout, a live “telethon” event in NYC – where the goal is to raise $50,000, every penny of which will go toward abolishing $1,000,000 of defaulted medical debt. (In general, you cannot buy the debt of individuals. Rather, you have to buy categories of debt either by geography–folks in a given zip code, for example–or by category–medical debt, credit card debt, etc.)

There will be a livestream simulcast of the telethon this Thursday November 15th at 5 PM upstairs at the Niebyl-Proctor Marxist Library at 6501 Telegraph Avenue, Oakland, CA 94609. Hannah Appel will host the livestream event and has a box of Debt Resistors Operations Manuals to distribute, so we can start talking about debt as a broad platform for resistance and direct action, and maybe get a Strike Debt working group going.

After we have purchased and successfully abolished this $1,000,000 worth of debt, those whose debt was abolished will be notified with a letter that explains:

(1) That their debt has been abolished, and how that was done
(2) How to contact credit agencies to make sure the debt cancellation is reflected in their credit score
(3) How they can pay some of the jubilee forward, to abolish others also in debt. This is the “rolling” aspect of the jubilee.

http://occupyoakland.org/2012/11/debt-resistance-the-peoples-bailout-aka-the-rolling-jubilee/

[OneGrassRoot]

2. EXCELLENT!

I hadn't seen that information anywhere, and that's precisely what I needed.

Thank you so much, HiPointDem!

[HiPointDem]

6. I think what would be interesting would be to find out how a group of people could pool their

money to buy up some debt. For example, could the people in a city get together to buy up mortgage debt in their town? How to do that & from whom (I'm assuming at gov't auction, but how to get the info?)

also, there's this:

http://www.scribd.com/doc/105887484/Occupy-Wall-Street-Strike-Debt-The-Debt-Resistors-Operations-Manual

not directly about buying debt, i think, but it looks like an interesting read.

[OneGrassRoot]

11. EXACTLY!

LOL

I don't mean to keep yelling at you, I'm just grateful for your replies.

Tama seems to have great insight and has posted below; way over my head, to be honest.

But, yes, we're thinking along the same lines. I don't have $$ but know a couple of 1%'ers and I'm thinking this may be a good trickle-down effect for them to make a HUGE direct difference in communities.

I've had a Six Degrees of Compassion idea for years...with a Robin Hood slant...and this Rolling Jubilee concept sounds perfect.

Now I'm getting emails from other progressive orgs saying they're involved. Granted, I haven't had a chance to read anything in depth, so I'm coming across as a complete idiot, I realize, but in my ignorance I'm now concerned that it's going to get very, very confusing, very quickly, with people needing clarity as to precisely where the money is going in each case. It would be very easy for a group to take advantage of the brilliant idea and generosity behind it. Strike Debt may have partners listed on their site or something. As I said, I haven't followed up on anything as yet.

For example, this, from Nationofchange.org

http://secure.nationofchange.org/abolishdebt

[OneGrassRoot]

12. And I mention 1%'ers...

because they can make the biggest impact and it's simply the right thing to do.

Most of us (well, at least the people I know), struggle to donate even $20. Crowdfunding is great, but when that crowd is struggling to survive, it can fall on deaf ears.

I want to focus on balancing it out by FINALLY having some of the money trickle down to ease struggling, while we simultaneously do things at the grassroots level to build communities.

[sandyshoes17]

3. I love this idea

It has the potential of morphing into a new way of living.

[djean111]

4. Interesting comments at the link you provided.

Worst idea - in my opinion - was for OWS to form a PAC and contribute to candidates.
That is just throwing money away. Maybe the comment was sarcastic.
Dealing with problems directly is the only way to go, I think.

[OneGrassRoot]

5. I never even think to read comments at such sites...

It tends to be such a cesspool, so I stopped reading comments on public news sites long ago.



I will go back and check the comments at that link since it sounds like interesting points may have been raised there.

Thanks.

[tama]

7. You can't buy student debt

Student debt has surpassed $1 trillion partly because it is one of the most protected forms of debt by federal law. Student debtors may not discharge their loans in bankruptcy and lenders have rights to garnish wages and social security payments. The vast majority of student loans have these federal guarantees. We cannot buy these loans because there is no secondary market. However, we believe it may be possible to buy private student loans that are not guaranteed by the federal government; Strike Debt may attempt to purchase this kind of debt after doing further research.

http://rollingjubilee.org/

Strike Debt has also campaign about student debt:
http://www.occupystudentdebtcampaign.org/

[OneGrassRoot]

8. Thank you for this, tama.

Much appreciated!

[tama]

9. As

most personal bankruptcies in US are caused by medical bills - and 1 in 7 is haunted by debt collector, I presume most of these bailouts will go to people with health problems.

[OneGrassRoot]

13. I know this all too well...

It would be a thing of beauty to remove this unjust burden from so many.

Of course, we can't take our eye off the ball of Universal Healthcare, removing for-profit insurance companies from the equation.

Thanks for chiming in here, tama. I am not the sharpest tool in the shed regarding financial intricacies, so I greatly appreciate you sharing your insights and questions.

[tama]

10. Couple more questions

Last edited Tue Nov 13, 2012, 10:11 AM - Edit history (1)

1) Will the people's bailout be considered taxable gift, ie. when a debt is forgiven, will state demand taxes from the sum forgiven?

2) What does this mean for Fractional Reserve money creation system, M2, M3 etc., as banks create money as debt and then more money on the fraction of debt as money?

[mmonk]

14. I look forward to the answers in this thread.

Personally, I was thinking of a replicated state by state process. Within the states, a county by county replication or district by district.

[OneGrassRoot]

15. Yes, yes....

There's a lot to be explored here.