Here is a real life situation:
1. Invest cash, credit and other sources of income with TPTB and pals.
2. Debtor continues to default on repayment of principal and interest to creditor based on trust, promises and guarantees.
3. Creditor defaults on borrowings to fund investments with debtor and ruins credit ratings.
4. Creditor settles on borrowings with other sources of borrowings.
5. Debtor continues to borrow to repay other sources of borrowings and expenses.
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There are two ways to avoid default and/or bankruptcy:
1. Increase borrowings and/or
2. Increase taxes.
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Option two would place undo burden (or heavily “tax”) citizens.
Option one personally worked for me but allows repayment/settlement as arraigned with compassionate creditors.
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