Tell him to give you the money. You open the brokerage account in your name. Let him have trading authority (power of attorney) so he can trade. But of course you will have the capital gain tax liability. And he needs to compensate you for your work/inconvenience.
Creditors can't touch his accounts until they sue and win a judgement. Except that the IRS can attach money in an account based on your filed tax return. But, he should go to vegas, put it all on roulette black once and then he can either 1) pay his bills and open a trading account or 2) go back home and be in the same boat he was in before getting this money.
Anyone who wants to start trading before they pay their bills, is not rational enough to make money trading.
Chances the "friend" is op? Anyway you/he can consider an off shore bank account, but if you make any money make sure you pay your taxes. That's one debt you don't wanna f*** with
Wait 6 months, all the creditors will be broke, banks too. You'll be a free man. You've just doubled your money without trading. Two men are on opposite sides of the Earth. One is walking a tightrope. The other is getting a blowjob by a 90-year-old woman. Both get the exact same thought at the exact same time. âDonât look down.â
Sorry to disagree on you on this. Usually the creditors or banks auction or sells those loans to another bank or company. In response to the OP... I think you wanted to make some profit before paying off your debt, but I don't think that this is the best idea. It would still be best if you pay off your debts even little by little.
When the creditors are after you, it creates a moral hazard. Take the case of Fred Smith: http://www.npg.si.edu/exh/journal/smith.htm "Frederick Smith may be living the dream of every student. In 1965 as an undergraduate at Yale University, he submitted a paper in an economics class proposing the idea of a service that would guarantee overnight delivery. He received a "C" for the assignment. With self-effacing humor, Smith later told an interviewer, "to a ne'er do well student like myself, the grade was acceptable." The paper was the germ of Federal Express, a multibillion dollar company that spawned a new industry. Following military service with the Marines during the Vietnam War, Smith embarked on creating Federal Express-so named because Smith had originally hoped to transport checks for the Federal Reserve System, a contract that never materialized. Smith's military training helped him understand the organization that would be required to centrally route and reroute packages. Using newly developed computer tracking systems and a combination of planes and trucks to deliver packages, Smith had everything sent through Memphis, Tennessee, selected for its favorable weather conditions. There he employed a largely part-time work force, active between 11:00 p.m. and 3:00 a.m. Outside of Memphis, the company took advantage of underserviced airports in remote locations. After a rocky beginning, during which Smith on one occasion met his payroll demands with gambling winnings, Federal Express convinced the American public of the importance of knowing important information could be sent and received overnight. As the Wall Street Journal reported in 1989, "Smith's entrepreneurial plan rested on a single concept-reliability."
That's a great story. It is probably safe to assume that this delinquent is going to revolutionize trading as Fred Smith revolutionized postal freight.
I think he should have a psychological treatment so that he can have mỏe self-confident and brave enough to do the trade