Lecture on Debt Discharge and Financial Systems

Introduction

• Title: Discharge at this point in time
• Focus on debt discharge under banking terms
• Legal definition of discharge under banking terms:
  • Cancellation of a debt due to bankruptcy
  • Debtor not liable, lender can't collect debt
  • Global bankruptcy since 1933 means everything should be discharged

Banking Process for Discharge

• Banks discharge debts quarterly and submit forms by March 31st annually
• 1099c form usage for discharging debts through the Treasury Department
• Banks have fiduciary duties and security interests outlined in contracts
• Implications of signing over fiduciary duties unknowingly

System of Creditor and Debtor

• The U.S. system considers citizens as both creditors and debtors
• Why being a creditor may not be beneficial
• Situations where citizens act as creditors (e.g., in court)
• Importance of understanding operating systems (Constitution vs. Emergency Banking Act of 1933)

Emergency Banking Act of 1933

• Keeps the U.S. in a state of emergency to use FRNs (Federal Reserve Notes)
• Understanding the terminology to navigate the system
• Five titles under the Emergency Banking Act to be familiar with
• Structure of the financial system: Treasury, Banks, Post Office

Realities of Federal Reserve Notes (FRNs)

• FRNs are floating rate notes used by Board of Governors, not general public
• Misconceptions about FRNs and their lawful usage
• Legal implications of using FRNs and being considered