How to Build an Income Sharing Agreement Product

Post by vanniv » Wed, Nov 06, 2019, 4:44 AM UTC

pcmaffey wrote: post #3

mdorazio wrote: post #2

Is it just me or does it seem like we're now one step closer to turning people into companies with shares that can be bought and sold? It feels like a small step from ISAs for education funding to ISAs for all kinds of funding instead of traditional loan agreements and at that point you might as well sell shares of yourself to the highest bidder so they can trade your future income on a secondary market. (Note this i…

Which leads us back closer to the ugly reality of people owning other people. ISA used to stand for Indentured Servitude Agreement. (Not saying Incoming Sharing Agreements's are bad, we just have to be careful...)

Post by Spooky23 » Wed, Nov 06, 2019, 1:09 PM UTC

pmiller2 wrote: post #60

TimPC wrote: post #27

Earlier quoted context omitted.

Or setup a contracting corporation, accumulate your consulting income in the corporation. Have a home office. Pay yourself as little as possible to cover living expenses during the 5 year period and accumulate all the capital in your corporation. Pay your 10% on that small amount. Cash out the corporation afterwards, possibly over several years to lower tax burden.

I have a feeling that would be a breach of contract due to fraud. I also think that since you were able to come up with it, other smart people would be, too, and some of them would be people drafting these income share agreements.

Post by throwaway_law » Wed, Nov 06, 2019, 2:11 PM UTC

pmiller2 wrote: post #55

throwaway_law wrote: post #7

Earlier quoted context omitted.

>I don't disagree with you, but I'll note that the non-dischargeable terms of medical and student loan debt in the USA essentially do that already As a preliminary matter this is false...student loans are dischargable in bankruptcy, they are just treated differently than other debt. However, there is a reason everyone thinks student loans aren't dischargable and the myth persists... >the incentive structure of "we do…

Regarding student loans, yes, you are technically correct that they are dischargable in bankruptcy. However, the standard for federal student loans is that the borrower must be in a situation where there’s literally no hope of ever paying them back in order to qualify. This makes them _de facto_ nondischargable. Private loans, IIRC, are dischargable with a lower standard, but it escapes me what the standard actually…

Post by rtkwe » Wed, Nov 06, 2019, 3:33 PM UTC

Spooky23 wrote: post #65

rtkwe wrote: post #28

Earlier quoted context omitted.

Sure it's vaguely does but most fields people would go into for college degrees don't generally do work undocumented. Also the loan company has an opposite incentive to track down anyone doing that and unlike the IRS they're not hamstrung by Congressional attempts to bleed them dry.

Undocumented doesn’t mean washing dishes for cash. Your spouse sets up an LLC, which employs you at minimum wage to be a contract worker or consultant. This already happens in government contracting where small companies have a leg up of they are female, minority, or veteran owned.

Post by journalctl » Thu, Nov 07, 2019, 1:39 AM UTC

aripickar wrote: post #35

journalctl wrote: post #26

Earlier quoted context omitted.

Clearly default and a lifetime of ruined credit is the better option.

I'm saying that bankruptcy at 22 or however young is the much better option. You get it discharged before 30, and so it doesn't even impact the terms you get if you're trying to buy a house for a lot of people. If your options are bad credit for 7 years in your 20's, or 250k in debt, then everyone is going to choose the bad credit every time.