what if I told you that debt discharge isn't about running from a responsibility it's more about fulfilling the obligation in a way that they don't teach you now in this video I'm going to break down the real re the real meaning of debt discharge how it differs from forgiveness or default and why understanding commercial law flips the power back to you without breaking any laws now before we dive into this I've studied credit systems the UCCC and lawful contracts and I'm here to show you that debt discharge is a performance you dig me and it's just not the kind that they want you to know it's just not the kind that doesn't make them more money okay so before we dive into this this is not legal advice this is not financial advice do your due diligence make sure you are using your head okay don't just watch these videos and just employ these tactics without without using your brain without using your own due judgment you know what I mean so another thing if you're brand new make sure to like subscribe turn on the post notifications because I do post daily content Monday through Friday all right let's dive straight into this okay most people think discharge equals escape okay and when people start to think like this this is the reason why they think things are not believable or not true okay once you understand exactly what debt discharge means or discharge means then you can stop moving from a a a place of fear a place of "Oh I can't do this." Okay so let's just look this up real quick discharge okay in legal context mean broadly refers to the release from a legal obligation duty or restraint this can include being freed from a debt a contract a jail sentence or even a military service all right now that we got that covered people assume discharge means running from a debt people assume discharge means avoiding payment and people assume that discharge means that you're breaking a contract but the reality is in law discharge doesn't cancel duty it completes it through different means now remember when I talk about discharge it's a performance okay typically they your only performance that you think you can do is pay with the Federal Reserve note but what if I told you that discharging was an actual lawful fulfillment you know what I mean so it's not about paying but it's about how you perform okay a a contract requires a performance okay so even when you look at the definition of tender and they'll say "Well you need to give me legal tender." Okay when you dive into tender it says to unconditionally offer money or performance to meet an obligation so it can be a performance nowhere does it say that a tender is the dollar bill you got me so let's dive into the next thing okay let's talk about the aspect of discharge versus forgiveness so I got this quick diagram okay so real quick let's just talk about the difference between discharge and the difference between forgiveness and the difference between default okay number one when you look at discharge discharge is a lawful fulfillment okay discharge is backed by codes and law and discharge can be initiated all right you can actually initiate a discharge you mean so let's talk about the difference between discharge and forgiveness forgiveness is cancelled by a creditor and often taxable and it also requires approval okay you need to ask for permission you dig me so it's not in the aspect of you can initiate it it's not something that is typically backed by codes or law and it's not a lawful fulfillment it's more of the creditor says "Hey you have permission to cancel this." Okay and then let's talk about default default is a breach of an obligation meaning you didn't perform number two it leads to collections and number three it can damage your credit so you usually don't want to default on your credit you want to either get it discharged okay discharging is your right it's not a favor like forgiveness okay and the creditor still gets paid just by not by you directly so when you look at the definition of discharge discharge is a transfer of an obligation to a different party and that party will fulfill your payments or your performance okay a lot of you guys don't understand that you're you have the right to do this because you are under a system that credit that you're under a credit system that literally is not even real money so if you report the certificate of indebtness or you or you report that there is a debt that you owe it's already insured by the government okay now how discharge actually happens discharge actually happens via remittance either you're going to use a coupon return or payment voucher okay you get the bill statement you send you send the bill back to the company on the bottom part it's a check people look at that and think that that's the bill but it's actually a check it looks just like a check it's actually a coupon attached to a bond and then when you send that coupon attached to a bond or accept it for value and you remit the bill using that coupon that is a version of discharge the other aspect is via insurance payouts bondings or third-party coverage so in the in the other instances where your like I said before your debt is insured FDIC insured most credit card companies and most banks are FDIC insured people look at that and think well this just means that they're official no it means that it's insured it means that if you don't pay it they're going to get paid out regardless okay the other aspect is UCCC tender of payment people look at uh uh discharge and don't understand that there's a law under tender payment where you can create your own tender your own unconditional offer your own unconditional performance to meet an obligation okay then we dive into offering a negotiable instrument or a bond a negotiable instrument can be uh is essentially a promise to pay okay it's an unconditional promise to pay with your signature okay of a fixed amount okay as long as you unconditionally promise to pay something that becomes a negotiable instrument that they can use as a financial assets okay and then sometimes through settlements agreements or administrative process so if you get in a situation where you are being challenged on the debt and you challenge a company on the validity of the debt and they uh let's just say are unable to prove the debt or let's just say that they you are going through a negotiation with a company and you get to a point where you settle on the debt or you settle for pennies on a dollar or you find out that they never funded the loan and you know you prove this to them or they cannot prove that they didn't fund that they funded the loan things in that nature or there was a lack of disclosure and you start challenge them on these things and now they're in a position where they cannot uh uh uh uh reply back or they're they're violating your rights now they get in a put position where they're like "Damn well I don't want to get sued for this stuff so let's just go ahead and settle it." Okay either I'mma settle it or I'm going just let you go about your merry merry way and when I let you go about your merry merry way I'm actually refusing or forfeiting my ability to collect from you okay so if you take a company through administrative process or you try to settle or you try to negotiate with them and the negotiations don't work in terms of they don't either accept your tender payment or they're unable to to to uh provide the proof that they can legally collect on a debt now they're in a situation where they either have to settle or go to court okay and fight it in court and if you're a person who do this properly through the administrative process this is something I talk about in the complete debt guide if you're a person who does this properly through the administrative process and you build your evidence substantial enough to be able to bring it to court and you can communicate your evidence in a proper way so that they can look stupid for not doing their duty and performing on your contract which we'll talk about some of the laws that this is backed by then they are in a position where they are violating the rights they are in dishonor and when they dishonor you that is a violation that's something that you can sue them for that's actually a criminal violation okay that's fraud okay that's you know we'll just stop that fraud okay so if the creditor receives value even from another source the obligation is discharged so a lot of people think that okay well my debt is charged off if my debt is charged off why are you still coming after me for the debt well they don't really give you no real reason okay it's not that you need to ask them for permission is you literally say "Hey the debt is settled so there's nothing for you to come after me for you already made your money are you trying to get double recovery?" Which is actually illegal okay it's illegal for you to try to double collect is illegal for you to try to double recover after something has already been settled okay so banks would do this to you it's called double dipping and you can actually bring this up in the face of the evidence you can bring this evidence up in court you can bring this evidence up to them okay you bring this evidence up to them they have no choice but to follow directions okay so now let's talk about the laws that back it up getting straight to the point man this is this is one of those videos that I want to get straight to the point because a lot of times we we we look at discharge and a lot of people think that you're doing something wrong or you're doing something unlawful i just did a video talking about are you going to go to jail for discharge no you cannot go to jail for discharge if you do it properly but there's a lot of times we try to just do things off of what we see on the internet we just try to just send in one little letter you know we don't even know what the letter is saying we don't even understand what it is saying or how to even communicate it properly and then they'll send you a letter back saying "Well this is fraudulent." Well you don't know that you need to respond back to them and tell them how tell them it's not fraudulent and tell them to prove that it was fraudulent if you're unable to do that and if you don't do that then yes you're going to be in a position where they you are committing fraud because they said you did and you didn't assert your rights and say you didn't you mean so when you don't do that then you actually asent or agree to whatever they say stop just unknowingly agreeing to whatever they say this is why in my previous video I talked about how your awareness is what really brings your sovereignty it's not paperwork because I know many people who do paperwork but still don't understand that they are sovereign they're still yelling at creditors about their sovereignty but it's not about you yelling to them it's about you being aware of that is and just exercising it properly if you don't exercise it properly then yes you're going to be put in a position where they take away your sovereignty okay and it has nothing to do with you doing paperwork cuz you can do paperwork and it still wouldn't matter okay so don't just pay somebody to do your paperwork and you don't even know how to do it you don't even know how to uh uh negotiate your debts you don't know the administrative process of sending letters to your trust you don't know how to do these things and if you don't know how to do these things then what is the point of you going through all the rig and roll creating a trust that you don't even know how to use okay so I typically say that ignorance on fire is better than knowledge on ice but when I when it comes to uh uh an aspect of this you want to actually have full knowledge of it to the point where you are comfortable with the information it's not that you need to know every single thing but you need to be comfortable with the info before you start to exercise this these things because your comfortability and your information your education behind it is actually what's going to fuel you to take action okay don't do this and you're uncomfortable and you don't believe in it if you don't believe in it then I'll tell you to click off the video right now don't go in the comment section and say "Well look you know how come this that and the third?" Okay but since we are in the middle part of the video go ahead and like the video go ahead and subscribe go ahead and tap in to my Instagram down below the link is in the description whatever the case may be man this is just the middle of the video and I want to make sure to tap in with you guys all right thank you guys we hit 20,000 subscribers road to 100,000 subscribers so go ahead and hit that subscribe button and turn on the post notifications all right let's dive into these laws okay now first thing we're going to talk about is the tender of payment which essentially discharges an obligation going straight down UCCC 3-603 it says if a tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused there is discharge to the extent of the amount of the tender of the obligation of the endorser or the accommodation party having the right of recourse with respect to the obligation of which the tender relates see I could talk about this in every single video and somebody will still get on the phone me and say "Well I sent them the tinder and they refused it." Okay well what does that mean oh I've been watching all of your videos so you should know exactly what that means if they refuse it then the ball is in your court now you have to challenge them and say "Well you guys refused it and you shouldn't be expecting another bill if they send you a bill you want to send your letter or your tender or you want to send their refusal and you want to quote UCCC3.603 as a matter of fact be when you send a notice of tender or when you send them your tender you need to quote it right away you need to say "Hey under UCCc 3-603 if you refuse it then it is discharged." What are you going to say to that oh well this law doesn't apply we'll prove it doesn't apply okay then we dive into UCCC 3-305 which is defenses and claims against recruitment valid which gives you valid defenses against enforcement you have a right to challenge somebody's legal standing to collect on a debt you have a right to challenge somebody's legal capacity you have a right to challenge the the the legality of a transaction under the law okay and if it is illegal if it is unlawful if the contract was was is uninforceable then this nullifies the obligation of the obligor okay it says it right here okay if you did it under the rest lack of legal capacity illegality of the transaction which under the law nullifies the obligation of the obligor fraud that induced the obligor to sign the instrument neither knowledge nor reasonable opportunity to learn his character or essential terms discharge of the obligor in insolveny proceedings so long story short if you was persuaded to sign an instrument with with no knowledge or opportunity to learn of the character which it's you know which is the terms in terms of this obligation or this loan agreement then technically I didn't really agree and I can actually defend against that i can I can show that you guys didn't gave lack of disclosure and because of your lack of disclosure you now lost your ability to enforce this negotiable instrument okay or in other aspects where they try to do things uh uh uh unknowingly or information why would y'all do that if you guys are moving in honor and that brings me to my next thing evidence of dishonor okay so if there's a refusal of lawful tender then it is dishonor if you cannot prove that I didn't use lawful tender right under the law then it is a dishonor a dishonor is actually a violation of my rights okay you must give any and every reason why you dishonored me and you must prove the dishonor you must give valid reasons as to why you dishonored part of you dishonoring is you ignoring my letters if you ignore my letters then that is also considered a refusal of lawful tender if you send me a bill after I sent you a letter of a conditional acceptance or I send you specific instructions for you to do or for you to perform then you have dishonored if you ignore it okay and now you have to show up in court and prove why you didn't dishonor me or how you didn't and if you can't you have violated my rights okay then we dive into UCCC uh uh 31 USC 5103 which is legal tender united States coin and currency including Federal Reserve notes and circulating notes at the Federal Reserve banks and national banks are legal tender for all debts public charges taxes and dues foreign gold and silver coins are not legal tender for debts okay so long story short somebody look at this and say well it says that the dollar is legal tender but it doesn't say that that's the only legal tender you dig me because when we go back to the definition of tender it says tender is to unconditionally offer money or performance to meet an obligation but how about we go to uh UCCC uh uh uh uh uh 3-104 okay negotiable instrument okay negotiable instrument means a unconditional promise or order to pay a fixed amount of money with or without interest or other charges described in the promise or order okay long story short that promisary note that you signed or that loan agreement that they said was an agreement that was actually a negotiable instrument that is literally a unconditional promise or order to pay a fixed amount of money which is something that they then sell as a financial asset so if you sell this as a financial asset that is also legal tender you dig me so a lot of times people will look at some of these laws they may not understand or interpret the laws but you know again you have to read it for face value you have to literally look at it and also read not only for face value but read it read in between the lines read what they're not putting up there if they don't put certain information up there then that's not all that is to be known if it doesn't say that this is the only legal tender then it is not the only because they'll be very very specific about certain things okay they can be this is a whole code a whole book and it requires specificity okay then we dive into a 1099 C most people don't know what a 1099 C is but a 1099 C is a form that cancels debt okay okay any debt that's over 600 bucks can be cancelled using the 1099 C now I'm not telling you guys to fill out these 1099 C's unless you know how to do it as the creditor but when you get charged when you get a company charges off your debt what happens is they fill out this form okay and essentially they will fill it out as them being a creditor okay they will put your SSN here your name here okay and then they'll send this into the IRS this right here discharge is an obligation discharge is back to what I put here a lawful fulfillment backed by codes and laws and can be initiated not only by you but also by the bank okay now if the bank discharges it by filing the 1099 C and they cancel your debt that means that it was settled so if it was settled already what they're supposed to do and this is what I tell people to ask for when you have a charged off debt on your credit report is you want to ask them for copy B okay this is important information that should be sent to the debt door okay this also becomes taxable income to the creditor so understand that when they file your debt and they charge it off they must send you a copy B of it if you have a copy B of this you can take this to the credit bureau and the credit bureau can see that the debt was settled and they must remove it off the credit report okay then we dive into the Federal Reserve Act section 16 or we look at the Federal Reserve rules institutions are made whole via third parties so when you understand the whole Federal Reserve system and you understand the nature of obligation you understand the things that are highlighted in section 16 which talks about lawful money which talks about the aspect of the whole fractional banking system which talks about how banks literally go to the Federal Reserve and get the money from the Federal Reserve they don't actually uh uh uh uh risk their own money they actually just borrow from the Federal Reserve and show your promisary note as a proof of income then now you're in a position to where you can now prove that they never funded the money you can prove that they not only do they did you it's not that you have to prove it to them but now they have to prove it to you that they didn't fund the money because you know this information okay so when you ask a simple question simple question like how was the loan funded and it's not that we took it from the Federal Reserve and it's a lie saying we used our own reserves that's something that could be brought up in court and is considered a criminal action under 15 USC 16 11 uh-oh criminal liability for willful annoying violation okay giving false or inaccurate information or fails to provide information which he is required to disclose under this provisions of this subchapter or any regulation issue here is essentially a willful and knowingly knowing violation okay so now that you guys understand that this is why they don't teach this okay because discharge shifts the power dynamic okay if you start to discharge things it shifts the power into your hands okay they cannot double dip like they want to okay number two because dishonor discharge honors the contract it doesn't essentially benefit the collector's preferred process which is to double dip which is to not only discharge it not only get the insurance payout not only get the money upfront but also come after you with interest and then have a have a a reason to take you to court you dig me so again they're not going to make this easy for you and this is why you should understand the process because when you understand the process and you know that they're not going to make it easy for you they've been double dipping and making triple their money off of your signature and off of your unawareness then you will know exactly why they decide to reject and decide to say things that that don't honor you there's no point in arguing with them is you just state the facts and you state the laws and if they don't want to go against it then you take them to court and you have them prove and give a valid reason why they didn't follow the law okay because knowledge of lawful fulfillment threatens their collection model and not the law itself it's not about the the the law that you're messing up it's about how they collect money they can't make extra money off of you so this is why they feel threatened by it and this is why they always push back against it okay so understand that discharge isn't fraud it's a performance you dig me if you perform on your contract then you are good okay doesn't mean that you have to pay you just have to perform you mean it is not a loophole it's the other side of contract law that they do not tell you so now that we got to this point here that discharge isn't about skipping your responsibilities it's about honoring them with knowledge not fear and when you understand discharge as a performance you stop playing defense and start commanding respect in the system when you go back and you watch all of my videos that I'm going to give at the end of this uh uh uh uh video okay where it's geared towards um where it's literally talks about debt discharge and you really go watch every single video you will see that I'm breaking down these concepts very in in the the lamest terms that I can showing the laws but also at the same time helping you overcome that mental slavery of debt a lot of people look at debt and they think that it's something that they should be stressed about but the reality is is like you know the worst that can happen is that they'll try to say that you default but it's a long process that they have to go through before they can come after you for the debt in court but in the meanween time if you know the laws and you are aware of the laws then you can start to challenge them on certain things you can start to challenge them and start sending them letters to delay the process and shift the burden of proof onto them if you understand what burden of proof is they now have to prove something before they can uh uh uh continue to collect before they can take any legal action okay you can't go to jail for challenging them on something that they should have already given you and they are required to give you okay so now that we at the end if you want to learn more about this definitely tap in with the complete debt guide down below it's only 47 bucks if you do tap in you grab the 47 bucks this is something that you can resell as an affiliate okay you can refer this to your friends family and you can also make money at the same time this right here not only uh uh uh you know helps you guys but it also helps support the channel okay when you support the channel I can keep dropping more videos down here and it's not that you're just going to be donating to me okay but you'll actually be uh putting towards a good cause so I can continue to keep dropping these game so I can continue to keep dropping the videos and things in that nature but even if you don't do that just hit the like okay go ahead and subscribe turn on the postal notifications okay also to complete that guide you're going to get my dis discharge strategy guide you're going to get a legal tender template you're going to get many different letters and forms that you can learn from okay not just send and hope for the best but you can learn from that's my whole goal is to educate you guys and hope that you guys learn from the information and not just send it off okay number two if you want to apply to my one-on-one mentorship that's down below this is specifically for people who are ready to invest in themselves people who want to grow their business people want to fix their credit people who want to get funded if you're not trying to do that and you want to ask me a million questions on the phone I would suggest you don't uh apply okay I'm just keeping it the buck with you there is going to be an investment attached to whatever it is if you end up talking to me on the phone but if you don't want to you want to know something that's upfront $47 go ahead and grab the complete debt guide learn more about debt discharge on your own time okay you'll have that for a lifetime and lastly follow me on Instagram for credit and more updates as it regards to consumer law as it regards to my YouTube channel because nobody is talking about this anywhere else all right now my last question is have you ever tried to discharge a debt and been told it was illegal drop your stories in the comments and let's clear up the truth remember to like subscribe turn on the post notification comment the word discharge if you made it all all the way to the end because the law is on your side when you use it in the right way i love you guys and I'll see you next time