Yesterday, I was wondering about a possible way of making money, which I suspect is a sort of fraud:
- John Doe gets a loan from the bank
- He does not pay the bank for months, or years.
- He receives a call from the bank OR calls the bank to renegotiate the debt saying he simply cannot pay for it all.
- He eventually pays less than what he borrowed for the bank accepts receiving less money instead of receiving nothing.
Is this sort of thing common (or even possible)? Is there a name for it or anything? Thanks.