[stevefan1999]

So you mean...marrying someone but transfer all the personal debt to the others, then divorcing so that I have no responsibility whatsoever? Not even an obligation to settle for the debt just like disappeared through an expired relationship?

[nashashmi]

Is there a legal term for this kind of restructuring of debt?

[stevefan1999]

I vibe asked it on Kagi Assistant and it said the closet relevant result is https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy

To me it seems more like leveraged buyouts + debt restructuring all at once. I rather coin this term "debt offloading", which could also cover the cases with Enron for the tactics they used about 25 years ago

[FireBeyond]

As soon as you mention Texas Two-step, you'll get a chorus of people who argue that it's a good thing, that it's really the defendants doing the plaintiffs a favor and making it easier and cheaper to sue them and the fact that each company that has done this has snuck out of between 90 and 99% of its obligations and washed their hands of them is a complete coincidence and that just wait, you'll see, the next time a company does it (using the same law firm that has handled all these) they'll really, truly, cover all of their obligations, perhaps even more, and at less cost and effort to their beleaguered plaintiffs.

[FireBeyond]

In personal terms there is the "deathbed divorce", a uniquely American construct where couples, often elderly, get divorced while one is in hospital or hospice in an attempt to not saddle their soon to be widowed partner with six digits of medical debt.

In another uniquely American construct, that won't stop hospitals calling up all their relatives either implying that they are now responsible for those debts, or that it would be a mark of respect and honor if, even not, the relative would be willing to settle them anyway.

[svpernatvral]

Scamming the state through private debt emission.

[Ozzie_osman]

"Private Equity"

[BigTuna]

Welcome to late stage capitalism

[chatmasta]

This is early 1990s capitalism.

[BigTuna]

1980s even. It takes a while to siphon off all the value built up by multiple generations.

[lanstin]

The hidden truth about economics in my lifetime.