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I just hit $200k NW and it’s been 7 months since I made my post (link below) about hitting $100k NW in Dec ‘21.
I’m just mind-blown since it took me 2.5 years to get the first $100k and it’s snowballed from there. I’ve gone from $82.5k TC to $238k TC plus a $20k appreciation on a house I bought at the beginning of the year
Can’t really talk about finances with friends/family so this is the only place I can share milestones like this haha…we’ll see if I can hit $300k by EOY
https://joinfishbowl.com/post_muypy45qoy

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Rising Star
The difference is that for the NPA, you’re buying debt that has already been issued. You not have the right to collect it, but, depending on the NPA, the purchaser is no longer under the obligation to extend new credit—you simply have the right to collect the debt. Under a CA, you have to extend credit and, depending on the CA, have an obligation to fund extend credit with your own (or a syndicate’s) cash. It is nuanced, but that is the general difference.
Sometimes an NPA is just a credit agreement with loans changed to notes, loan parties changed to note parties, borrowings changed to purchases, etc. You’ll see NPAs that were just conformed from a credit agreement quite often, sometimes because existing debt has covenants that would permit an issuance of notes but not borrowing debt.
Rising Star
Good point. Again the NPA will often reference a lot—and incorporate a lot—of an underlying CA (if aplicable).
Good clarifying point there!