Perhaps some people choose to pay the debt that they can legally ignore because, well, that an honorable thing to do. Apparently, the "debtor-is-always-a-victim" crowd never heard of this concept.

And no, it doesn't matter whether the party on the receiving end is the original lender or someone who purchased bad debt. The repayment of a legally-unenforceable debt makes it possible for an original lender to sell it to a third party and thus recoup at least something.

Honorable borrowers should be supported, not treated like stupid infants by the condescending elites.

I don't think there's anything wrong with paying a debt you incurred, even if you aren't obligated to pay it anymore. However, there is something wrong with telling someone over the phone that they have to pay this debt or you will take legal action when that is legally impossible. Even if the debt wasn't paid, it was discharged, just like a debt that is paid in full. I paid my car loan off years ago, but it would annoy me if someone bought the loan and tried to convince me I had to pay it again or face legal action.

I was more surprised that this market for unenforceable debts existed and that if bore fruit at all. I know there is a body of research in Contracts on the impact of unenforceable provisions and I wonder if there is a connection there.

Is the market for discharged debt a market to buy debts owed by those who will honorably repay their discharged obligations? Or is it perhaps driven by illegal and deceptive practices from debt collectors? Consider these facts. I'll report. You can decide.

First, the bankruptcy discharge bars any attempt to "collect, recover, or offset" any debt discharged in a bankruptcy proceeding. The bankruptcy discharge has the effect of a court injunction, violations of which are punishable contempt of court. Merely contacting a debtor about a discharged debt violates the discharge injunction, meaning that any repayments by discharged debtors would not only have to be voluntary but also initiated by the debtor. (If the debt has been sold, one might also wonder how the debtor knows who to contact.) Second, this discussion was started by a posting on Credit Slips reporting on an FTC sanction against a debt collection agency for making misleading statements in precisely this context and on the heels of a NY Times story detailing that harsh and illegal practices by debt collection firms have dramatically increased in number. Third, interviews and surveys of bankrupt debtors show that most all struggle for years trying to pay their debts before they file for bankruptcy.

In the interest of disclosure, I should say that I am one of the contributors to Credit Slips where this topic was first discussed.