debt settlement scenario

I have to confess, I am a bill collector. It was a job I fell into after being a skiptracer for a couple years. I quit my job back in 2002 after turning a hobby selling on eBay into a lucrative business. I grossed $100,000 the first 3 years I was fulltime.

I wasn't used to making so much money and got myself in over my head. I was the type of person from the time I was 18 who was always on top of my credit situation. I lost sight of that and got lazy. I started going on European vacations and buying more merchandise then I could handle selling and merchandise that turned out not have the ROI that I had thought.

Around this time I got engaged. It was actually on one of those European vacations where I proposed on top of the Eiffel Tower. That relationshop quick crashed and burned shortly after we moved in together.

I began transfering balances from a couple cards to a new card with low or no apr for up to 3 years. I had platinum cards out the wazoo. Instead of keeping track and closing accts that I tranfered the balances off of I kept them active and soon charged them up.

Right now, I'm about $65,000 in credit card debt. My business crashed and burned but it slowly rising again like the Phoenix. I;m back in the saddle again, so they say. Though, I'm nowhere near $2000/week sales I was once grossing.

For the time being I'm back to bill collecting. It's not a job I like. Just a job that pays my bills -- a job I'm actually good at and could right a book about.

I have this question... a friend of mine in a lawyer in another state. She worked for CCCS a few years ago as an in office attorney. She suggested that I open credit cards in my name and my business's name. Then contact (or move to the state she's barred in) the agencies who either are handling or who own my debts and negotiate for bottom line settlements. Part of the arrangements would be for the debts to be siffed/settled in full for 10-30 cents on the dollar which is not unheard of. Have a written agreement that the debts will be removed the agencies stop reporting the debts once settled.

She suggested that I transfer these settled accts to the new active credit cards. This will eventually clear up all of the charged-off accounts. Then let the new accts that I transfered the debts onto go into default and eventually collections where I can then settle out those debts for 10-30 cents.

In essence, she wants me to sif $65000 @ 30% = $19,500. Then let that $19,500 go delinquent on the new credit cards and settle that $19,500 + interest and fees at 30%. That would turn $65K into $5850 according to her recommendations.

I can see clearly settling out the initial $65000 for 30% or even 15%. The charged off accts I have are 2-3 years old. The debt purchasing companies bought the debts for pennies on the dollar. But, the whole idea of settling the $19,500+ is what I question. Is it feasible.

I know there are some loopholes in the debt world that you can drive a Mack truck through. Is this one of them?