[willprice89]

> One other thing debt collectors due is robo-sue their targets, bulk-filing boilerplate suits against debtors, real and imaginary. If you don't show up for court (which is what usually happens), they'll get a default judgment, and with it, the legal right to raid your bank account and your paycheck. That, in turn, is an asset that, once again, the debt collector can sell to an even scummier bottom-feeder, pocketing a lump sum.

I feel like this paragraph basically invalidates the rest of the article. If it's this easy for them to sue and get legal access to your money how is paying "optional"?

[antisthenes]

It's optional, because for a lot of smaller debts (<5000) they won't bother suing. They'll sell it for 0.1x cost to a collection agency and move on.

They get to mark it 90% of it as a loss on their balance sheet and pay less taxes as a result.