One of the most common dilemmas for a creditor: do I go to court before selling, or do I sell the debt as it stands? There is no single answer — it depends on your debt, your cash flow and your appetite for risk.
What a judgment adds to the value
A debt backed by a County Court Judgment (CCJ) is an enforceable title: the buyer no longer argues about whether the debt exists, only about whether it can be collected. This removes the legal risk and noticeably increases the sale price.
A CCJ also opens the door to enforcement: warrants of control, attachment of earnings, third-party debt orders and charging orders over the debtor's property.
But litigation has its costs
- Court fees and, for larger claims, solicitors' costs.
- Time: a defended claim can take many months or longer.
- The risk of adverse costs if you lose.
- And in the end, the debtor may still be insolvent.
What do buyers prefer?
There is a market for both. Financial investors usually prefer debts with a CCJ (contained risk, pure collection work). Law firms, on the other hand, often look for debts without proceedings: claiming is precisely their job and their margin. That is why both types are listed and sold on debtalia.
Recommended strategy
Remember you can do both at once: put the debt up for sale and, meanwhile, start or continue the claim. If you sell before the case ends, the buyer takes over the proceedings. And if the case progresses in your favour, the sale value goes up.
Conclusion
If your debt is solid and you can afford to wait, getting a judgment can raise the sale price. If you need cash now or don't want to take on costs, sell it without proceedings: there are buyers who specialise in exactly that.
