Though an off-shoot of Occupy Wall Street, the basic premise of Rolling Jubilee is part of the activist group Strike Debt.
It works like this. When the bank writes off your debt and places it into auction, those offering the most money will be able to buy it. That's good business, as it allows bankers to get the highest possible return for their investors.
Rolling Jubilee need to ensure that they are the bidders offering the most capital. They take the debt from under the noses of debt collection companies, then make it go away.
Meanwhile, the individual or family that have been struggling with their debt repayments get a new start. On the other side of that line being drawn, they can be assumed to have disposable income of their own now.
There's no compulsion, but a moral one for what happens next. Fair play pretty much demands that those unencumbered after this intervention will make their own donations to the cause. Thus the next people on the list are freed too.
Supporters of Occupy Wall Street are also contributing funds. At the time of writing (on November 13th 2012), they have raised over $128k. In the time it's taken to write this Wizzle, more than $13,000 has entered the kitty. This IS the people's bail out in action.
And just to kick things off, a live concert is being held on November 15th 2012 (the official launch date of Rolling Jubilee). The proceeds will be funneled back into the activist cause and begin the process of buying up debts to forgive.
It will be interesting to see how this one pans out; and how long it takes the banks to refuse to sell to them. After all, the fat cat executives don't want a scheme which makes them look greedy. Even if that's what everyone is thinking anyway.