For many drowning in debt, filing for bankruptcy seems like the only escape. But one Redditor insists they escaped tens of thousands in debt with a risky bluff — one that skirted the scarlet letter of a formal bankruptcy. Their story, which garnered over 7,000 upvotes in the notorious Unethical Life Pro Tips subreddit, sparked kudos, curiosity and some skepticism.
The Play? A Then-Unintentional Bluff
Years ago, the original poster was buried under credit card debt, with some accounts in default for multiple years. Collection calls were escalating, and lawsuits seemed imminent. Instead of ignoring the calls or folding under pressure, OP paid a bankruptcy attorney an initial retainer — roughly $1,800 — and directed all creditors to them.
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"I'm in the process of declaring bankruptcy and here is the attorney," became their mantra. Almost instantly, the calls stopped. No lawsuits followed. Creditors, assuming OP was on the verge of bankruptcy, seemingly wrote off the debt as a lost cause.
The twist? OP never ended up actually filing. Over time, the debts aged past the statute of limitations, and most were canceled. Five years later, they claimed to have an 800-plus credit score, a mortgage and multiple car loans, all while avoiding the stain of bankruptcy on their record — although it's worth noting that bankruptcy doesn't condemn you to being persona-non-grata with lenders.
Why the Unorthodox Tactic Might Work
Bankruptcy departments at creditors often pause aggressive collections once an attorney is involved, as pursuing a debtor nearing bankruptcy is often futile. But the poster's success hinged on a critical detail: They actually retained a lawyer, even if only briefly.
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"To be clear I did actually retain the bankruptcy attorney," OP said in the comments. "Then I never followed through with whatever else I was supposed to provide and the bankruptcy filing never got done." This distinction may have been enough to deter creditors from escalating.
Similar Experiences and Skeptics Weigh In
Not everyone was convinced. One former Citibank collections employee noted that creditors often verify attorney retention. If they can't confirm it, calls resume and debtors may consequently even face a heightened level of scrutiny.
Another commenter, however, backed OP's story with their own experience: "I didn’t even retain a lawyer. I simply told every collector that called me that I was *going to* declare bankruptcy and that I was ‘in the middle' of it," they wrote.
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The Fine Print
While OP's strategy worked in their case, it's far from foolproof. Creditors may still sue if they suspect bad faith, and lying about bankruptcy could have legal consequences. Plus, unpaid debts can linger on credit reports for years, even if uncollectible.
But whether a loophole or just luck, for OP the gamble paid off: "I avoided tens of thousands in debt with no real repercussions."
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Image: Shutterstock
