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Today, an individual debtor can file under as many as four distinct chapters.
IVAs are legal arrangements hammered out between the individual debtor and creditors such as banks or credit card companies, and usually run for five years.
The group made three separate purchases, buying hundreds of delinquent hospital bills each time, without knowing the identity of any individual debtor beforehand.
These sales occur for a fraction of the debt's true values – typically for five cents on the dollar – and debt-buying companies then attempt to recoup the debt from the individual debtor and thus make a profit.
These are: to preclude any form of debt mutualisation; to have individual debtor countries pay off their existing debts; and to have them adjust macroeconomically via austerity and deflation.
This pricing strategy enables NoviCap to assign fairer prices based on the specific risk level of each individual debtor," a spokesperson for the company tells TechCrunch.
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"The agency cannot comment on individual debtors," a spokesman said.
In addition, the laws of England, Canada, Australia, and New Zealand outline procedures for preventive composition and schemes of arrangement with creditors by companies or individual debtors.
But the idea behind The Receivables Exchange and MarketInvoice, a British equivalent is to break receivables down into small, tradable units so that buyers can make judgments on individual debtors and diversify their holdings.
Table 2 Insolvency frameworks in Spain, France and the UK Bankruptcy Mortgage Panel A A: Spain Duration (months) 20 23 7–9 Cost (% assets) 15%5 1515 % Discharge for individual debtors?
Rolling Jubilee's online experiment isn't really even for individual debtors, since they'll never know if it was their debt that was bought in the first place.
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