• Neato@ttrpg.network
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    8 months ago

    Interesting. If the government seizes properties that have been borrowed against, the government has to pay those loans? Can’t just cancel them or anything? Then you’re right and they might be worth a pittance. Especially after the over-inflating fraud. I wonder if Trump was able to get loans based on their fraudulent amounts.

    • gregorum@lemm.ee
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      8 months ago

      No. The state gets what part he still owns— Trump still owes the debts. If it ends up Trump really has nothing and, after seizing all of his real estate and investments, it still doesn’t amount to what he owes the state, Trump will have to declare personal bankruptcy. At that point, all of his assets will go up for sale and all his debt consolidated and managed, and all of his income will be garnished until his debt is paid off.

      This may, in fact, be what happens. Just like Rudy Giuliani and Alex Jones.

      • Passerby6497@lemmy.world
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        8 months ago

        I’m so hoping that Jones sees the IW brand sold to someone who will make it a reasonable force for good. I know the Knowledge Fight guys would love to have it, and they’re fighting the real info war!

    • michaelmrose@lemmy.world
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      8 months ago

      If a property is seized the government only gets the equity that the owner had in it so if Trump owns a 2B in property but owes 1.5B then the government may seize all 2B in order to satisfy the debt he owes the government. Worse the government will try to get as much value as possible but the value realized by a short term sale may be less than could have been realized had the customer had time to find the appropriate buyer. So if they only get 300M they can seize additional properties to satisfy the debt.

      Nobody in their right mind wants the government doing this for them instead of mortgaging and or selling their own stuff. He committed such obvious fraud he should have known the jig was up when it went to trial and started seeking buyers or mortgaging. They could have self funded an appeal bond hoping to reduce the damages and prepared for worst case losing it all.

      • Philippe23@lemmy.ca
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        8 months ago

        I assume what’s worse with the 300M scenario is that he still owes the other parties the 1.5B. Since the collateral is now gone, those parties will immediately demand full payment. So he’ll be forced to sell other properties to pay those debts, and it’s a cascade of a whole other set dominos of fire sales.