conversation: User (legalwhatwhat): "A colleague who used to work for a huge credit firm told me this, and it sounds too good to be true.\n\nTo explain I'll use a hypothetical.\n\nLet's say you owe a Hospital $5k.\n\nThe Hospital can sell that debt to a creditor (for much less than 5k, let's say 2k). \n\nNow, the Hospital has mitigated it's losses a bit, and the creditor now has the full responsibility of collecting the debt.\n\nThe creditor will then try to get you to pay back as much of the 5k as they can, but given they only spent 2k on it they will probably settle the debt for less than 5k; still making a profit off of your debt.\n\nI was told if you ask the creditor 'Did you purchase this debt?" and they answer yes, that you can immediately laugh at them and thank them for paying your bill.\n\n------------------\nHowever, if said Hospital HIRED a creditor to collect the money, it is still my responsibility as the creditor did not purchase the debt. \n\n"
  Self: "Purchasing your debt is not the same as paying it off. They have purchased the right to collect on the debt. No, laughing at them and hanging up does not absolve your debt. If you ignore them enough, and they are diligent, they can obtain a judgement against you, which can result in garnished wages, seizure of bank account/other assets, etc. \n\nSource: am a lawyer and deal with this shit all the time"
  User (legalwhatwhat): "If it's not the same as paying it off can you explain in detail?\n\nThe person who told me this is an extremely respectable older financial advisor."
  ronimal (ronimal): "The easiest and shortest answer to your question is this: of a debt shows up on your credit report, you're obligated to pay it. If it isn't on your credit report, you don't owe anything. "
  