What if the lender files bankruptcy and claims a loss on it, then subsequently zeroes the account and informs credit bureaus?
Has nothing to do with it. The paper claim as to value can always be reinstated as to the amount the bad debt was sold for. But the surface value of the debt and interest and collection fees remain on the sale of the note to the collection firm. The only out for the debtor is to search for an improper filing.
I don’t know. Seems to me that is in the realm of a tax and accounting question, not a question of whether the lender can sell the loan.
But it’s an interesting question, that’s for sure!