The question every Irish creditor asks before selling: how much is my debt actually worth? The short answer is whatever an investor is willing to pay for it. The long answer depends on five factors.
1. The debtor's solvency
This is the single most important factor. A debt against a trading company with assets is worth far more than one against a dissolved company or an insolvent individual. Buyers investigate the debtor before making an offer: trading status, assets, charges and any other proceedings.
2. The age of the debt
The more recent, the better. Debts under a year old sell at smaller discounts; after three or four years the discount grows significantly. Remember the Statute of Limitations 1957, which sets a 6-year limitation period for simple contract debt. You can read the Act on the Irish Statute Book.
3. The available documentation
Signed invoices, delivery dockets, contracts or a written acknowledgement of debt multiply the value. A debt with no paperwork has practically no market.
4. Whether there are court proceedings
A debt with a Circuit Court or District Court judgment removes the legal risk (only the collection risk remains) and commands a better price. Some investors, on the other hand, prefer debts without proceedings so they can run the claim themselves.
5. The total amount
Very small debts attract less interest — fixed recovery costs weigh too heavily — while very large ones shrink the pool of potential buyers. Debt portfolios let small amounts be grouped together and made attractive.
What discount should I apply?
As a guide: recent, documented debts against a solvent debtor, discounts of 20–40%; medium-risk debts, 40–70%; old or hard-to-collect debts, discounts above 70% or a sale simply "open to offers".
On Debtalia we recommend listing with a minimum 20% discount and marking the price as negotiable: the marketplace will quickly tell you whether your expectation is realistic.
The cost of not selling
When valuing your debt, always compare it with the alternative: years of court action, court fees, solicitors, and the real possibility of collecting nothing if the debtor becomes insolvent. A reasonable discount today is usually better business than an uncertain claim tomorrow. Debtalia connects you directly with buyers, with no commission and anonymous listings.
