sas5814 Posted January 23 Share Posted January 23 Not for profit buys medical debt from hospitals at a discounted rate and then dismisses the debt for people making up to 4x the national poverty level. This is a pretty neat idea: RIP Medical Debt 4 Quote Link to comment Share on other sites More sharing options...
iconic Posted January 24 Share Posted January 24 Only in America Quote Link to comment Share on other sites More sharing options...
JohnnyLAX9 Posted January 24 Share Posted January 24 (edited) They will also partner with other organizations that want to fund raise and partner with specific causes too. A church I went to Arkansas paid off a few million in medical debt by partnering with them and taking donations from the congregants. Edited January 24 by JohnnyLAX9 typos 2 Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted January 24 Moderator Share Posted January 24 I love this idea I read an article that the debt sells for pennies on the dollar. $1000 might forgive $100,000 in debt..... helping people is great With some savvy tax planning this might be a break even proposition... 1 Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 25 Share Posted January 25 14 hours ago, ventana said: I love this idea I read an article that the debt sells for pennies on the dollar. $1000 might forgive $100,000 in debt..... helping people is great With some savvy tax planning this might be a break even proposition... Didn't you used to be a financial planner for pro football players or something like that? And you "read an article somewhere" that debt is sold for pennies on the dollar?? Basic "Dave Ramsey" level financial literacy knows that debt is sold, and the worse off the debt (age of debt, etc) the less it is sold for. And regarding tax planning: Companies who forgive debt can send a 1099 for the forgiven part, leaving the recipient with a tax bill. Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted January 25 Moderator Share Posted January 25 3 hours ago, Boatswain2PA said: Didn't you used to be a financial planner for pro football players or something like that? And you "read an article somewhere" that debt is sold for pennies on the dollar?? ahhhh nope.... 3 hours ago, Boatswain2PA said: Basic "Dave Ramsey" level financial literacy knows that debt is sold, and the worse off the debt (age of debt, etc) the less it is sold for. exactly thanks for confirming what I already knew.... the point is not the debt - but to get it off the individuals plate/credit report 3 hours ago, Boatswain2PA said: And regarding tax planning: Companies who forgive debt can send a 1099 for the forgiven part, leaving the recipient with a tax bill. you missed it entirely. (But I am aware of this already thanks) That is a consumer level issue and not this side of the equation - which you seem to be missing.... I would propose you re read the posts instead of just attacking me (again and again is tiresome) You could purchase debt, settle it for nothing, and the people win..... as for a company and tax benefits - I am talking about the company side, not the individual side.... no waiting Boats typical illogical flaming reponse (which has had him removed from this forum before) Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 25 Share Posted January 25 Apparently you have lived a sheltered enough life to not know what an actual attack is, because I'm not attacking you. Disagreement with posting is not an attack (unless you are a moderator here I guess). So you didn't have any job as a financial consultant/wealth manager, or something in the financial world, before coming a PA? I might have you confused with someone else's messages from YEARS ago, but I remember you bragging about how you used to manage people's money, and referenced a pro football player. If that was someone else, then my apologies. IF your feelings are not too hurt (and I don't get banned again for questioning you), could you explain your business model where a business could benefit from this? Yes, the debtee could issue a 1099 and write off the debt, and a company could charge the debtor a few for working with the debtees (there are many businesses who will do that already, most of them are unethical). Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted January 30 Moderator Share Posted January 30 On 1/25/2024 at 1:08 PM, Boatswain2PA said: Apparently you have lived a sheltered enough life to not know what an actual attack is, because I'm not attacking you. Disagreement with posting is not an attack (unless you are a moderator here I guess). So you didn't have any job as a financial consultant/wealth manager, or something in the financial world, before coming a PA? I might have you confused with someone else's messages from YEARS ago, but I remember you bragging about how you used to manage people's money, and referenced a pro football player. Once again, (I already answered this once Boats but for you I will do so again...) - No and No - never have - you are clearly confusing me with someone else... If that was someone else, then my apologies. accepted IF your feelings are not too hurt (and I don't get banned again for questioning you), could you explain your business model where a business could benefit from this? Yes, the debtee could issue a 1099 and write off the debt, and a company could charge the debtor a few for working with the debtees (there are many businesses who will do that already, most of them are unethical). What I said was "With some savvy tax planning this might be a break even proposition..." As detailed in my post above you missed it entirely. (But I am aware of this already thanks) That is a consumer level issue and not this side of the equation - which you seem to be missing.... I would propose you re read the posts instead of just attacking me (again and again is tiresome) You could purchase debt, settle it for nothing, and the people win..... as for a company and tax benefits - I am talking about the company side, not the individual side.... To state this a different way, because in going back and re-reading I realized I jumped back a little to quickly - sorry I am not a tax person, or any type of business guru (although I am on my 2-3 small business so I have some experiential learning) If you had a not for profit (or some other business structure) where you have donations (or self funded) coming in. You could then purchase this debt for pennies on the dollar. This is an expense of the business. You then offer to settle the debt for a ridiculously low figure - like a dollar. This is where I am not sure how things works taxes wise - but if the IRS would let this debt be valued by the settlement amount you might be able to show a "loss" on he investment. Then if you have other expenses, i.e. office space or the like - you could show a sizable loss. again I am NOT an accountant nor attorney (and I did not sleep in a holiday inn last night) but that was my first thought. The second thought it take it out of the taxable realm completely by doing a not for profit. Community based and funded and run it as a 503(c). I sit on a board af a tiny one and although there is some set up it is pretty straight forward yearly from then on out. you are prevented from making money (fine with this business idea) and you might be able to help out a community. Local for profit business could get a tax donation/deduction by donating to your not for profit - and then the individual gets the medical debt forgiven. Again I don't know what the IRS rules are but I can't imagine someone would be worse off by "settling the debt" for $1 and getting almost then same 1099 in the mail verus never paying it and having it on teh credit report as in collections/never paind (but again I am not sure) In typing this all out I really wonder what the heck our system is doing. it is not uncommon when I have reviewed my own families EOB's to see the billed charge being 200-1000% higher than the accepted rate. (ER visit last year the ER billed $1200 and medicare pays $130!) By allowing the hospitals basically a blank slat to charge whatever they like to patients without insurance we are piling on more and more debt to those that can not afford it. It goes beyond the shame ethics that hospitals are using to justify and I wonder if we are actually creating a debtors prison of sorts by penalizing those without insurance on their credit report more then someone with insurance whom doesn't pay.... Going to have to think about this more but it is stinky on first whiff.... Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 30 Share Posted January 30 52 minutes ago, ventana said: I am not a tax person, or any type of business guru (although I am on my 2-3 small business so I have some experiential learning) So you didn't have any job as a financial consultant/wealth manager, or something in the financial world, before coming a PA? Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted January 30 Moderator Share Posted January 30 3 minutes ago, Boatswain2PA said: So you didn't have any job as a financial consultant/wealth manager, or something in the financial world, before coming a PA? Omg !!! For the 3rd time NO 1 Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 30 Share Posted January 30 1 hour ago, ventana said: Omg !!! For the 3rd time NO Now I guess your advice here sometimes makes a little more sense! 1 Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted January 30 Moderator Share Posted January 30 8 hours ago, Boatswain2PA said: Now I guess your advice here sometimes makes a little more sense! Do you have an actual comment or just veiled insults?? If you are looking for credentials (you seem to need). I have both undergrad and graduate business degrees, top of my class in MBA, at one of the top mba programs in entire country). I have developed and run 2 successful business and am on my third. do you have any real comments on this idea? Or just goading me??? Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 30 Share Posted January 30 Well, I thought I was pretty clear, but I'll repeat myself if it's necessary for you. I remember you throwing out all of your business accolades while giving "advice" here. I thought I remembered you telling me that you once did some kind of financial advising, and had a pro football player as a client. Since you say that wasn't you, I must have been mistaken. Clear as mud? Hope so. Wasn't trying to goad you, just clarify my memory. 2 successful businesses huh....why don't you still have them? Quote Link to comment Share on other sites More sharing options...
sas5814 Posted January 30 Author Share Posted January 30 31 minutes ago, Border said: One I still have, one I moved on to a once in a lifetime opportunity and the 3rd one I am building now... entrepreneurs tend to do this.... yup... I started 3 businesses from scratch. 1 I sold. 1 failed. 1 was getting steam when I had to move to take care of family and I pulled the plug. Still thinking about my next great adventure. Quote Link to comment Share on other sites More sharing options...
Boatswain2PA Posted January 31 Share Posted January 31 7 hours ago, Border said: you asked the exact same question 3 times and I answered concise and accurate all three times - please stop asking the same question. as for the businesses - One I still have, one I moved on to a once in a lifetime opportunity and the 3rd one I am building now... entrepreneurs tend to do this.... Wait...is this Ventana? Or Border? Or is there a user, and a MODERATOR at that, using multiple user names. I haven't checked the terms here, but in most every discussion board THAT would be a violation of TOS. Sorry if I ruffled your delicate feathers, I was just seeking clarification. Quote Link to comment Share on other sites More sharing options...
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