Sell a debt owed by an individual
If a private individual owes you money and will not pay, you can assign that right to collect to an investor. Here is how it differs from a business debt, what evidence you need and how to sell it legally.
What selling a personal debt means
It means assigning to an investor the right to collect you hold against a natural person who owes you money: a loan between acquaintances, unpaid rent, a recognised compensation, an invoice to a private client. The operation is the same assignment of the claim as always; what changes versus a company is how risk is assessed.
List the debt and receive offers without exposing anyone.
List my debtIndividual versus company
| Aspect | Individual debtor | Company debtor |
|---|---|---|
| Public information | Scarce (no public accounts) | Registry, filed accounts |
| Usual documentation | Private contract, receipts, messages | Invoices, contracts, delivery notes |
| Buyer's valuation | More weight on evidence and acknowledgement | More weight on accounting solvency |
| Framework | Assignment of the claim | Assignment + commercial rules |
Since there are no public accounts for an individual, the buyer leans much more on what you can prove: the stronger the evidence, the better the price.
Evidence is everything
A signed acknowledgement of debt, a private contract, transfers documenting the loan or even messages where the debtor admits the debt are gold to the buyer. Without evidence, the debt is hard to sell and the discount jumps.
- Acknowledgement of debt or signed private contract.
- Proof the money changed hands (transfers, receipts).
- Messages or emails where the debtor admits owing.
- A judgment if you already claimed in court.
With solid evidence, your debt is worth more. List it today.
Sell my debtTypical debts between individuals
- Personal loans between family, friends or acquaintances.
- Unpaid rent from a private tenant.
- Compensation or amounts recognised by a judgment.
- Invoices from professionals to private clients.
Legal basis and notice
The sale is structured as an assignment of the claim. You do not need the debtor's permission, but you should notify them of the assignment so it is enforceable and they know whom to pay. Mind the limitation period your jurisdiction sets, after which the debt can no longer be enforced.
How to sell it
- 1
You list the debt
Amount, type of debt and documentation. No personal debtor data.
- 2
You receive offers
Interested investors bid for it.
- 3
You accept and sign
The assignment is formalised and the debtor notified.
How much is paid
The price depends on risk and, above all, on evidence. As a market reference, discounts of 35%-45% are common, within a wide 25%-75% range. A well-documented personal debt with a judgment can approach the top of the range; one with no evidence, the bottom.
Debtor privacy
The listing does not show the debtor's identity and you are not asked for their personal or contact data: only the amount, the documentation and the nature of the debt. That data is only exchanged between seller and buyer if they close the deal, directly between them.
The acknowledgement of debt: your best ally
When the debtor is an individual and there is no invoice, the document that most raises value is an acknowledgement of debt: a writing in which the person admits owing a specific amount and, if possible, commits to paying it by a date. If it is signed and dated, or notarised, it greatly reduces the buyer's risk. No such document? Sometimes gathering messages, emails or transfers where the debtor admits the debt is enough: that trail also proves it and therefore raises the value of your claim.
If the debtor cannot be traced
A hard-to-trace debtor does not make the debt unsellable, but it does lower the price, because it complicates collection. Even so, there are investors specialised in these cases with the means to locate and pursue. The better you document the last known address, ID or earlier contact details, the easier it is for the buyer to value and bid. Being transparent about the difficulties works in your favour: it avoids surprises in due diligence that would sink the offer at the end.
Cash loans: how to prove them
A cash loan between individuals is the hardest case to sell, because it leaves no bank trail. Even so, it can be proved: a signed acknowledgement, messages where the debtor admits receiving the money, witnesses or later partial payments all serve as evidence. The more of that evidence you gather, the higher your claim's value. If you lend money in future, always do it by transfer and with a document: it will save you trouble and protect the debt's value.
Unpaid rent: a common personal debt
Unpaid rent from a private tenant is one of the most common personal debts, and it tends to be well documented: there is a tenancy agreement, receipts and a history of prior payments. That documentation makes it relatively attractive to the buyer. If the arrears pile up month after month, selling the debt for the overdue rent gives you liquidity without waiting for the outcome of an eviction or a claim.
List your debt and let investors compete.
Sell my debtBrowse debts for sale