When an investor analyses a debt for sale, the first question is always the same: "what documentation is there?" Documentary evidence determines whether the debt can be successfully claimed and, therefore, how much it is worth. Here is the ranking, from strongest to weakest.
Level 1: enforceable titles
- County Court Judgment (CCJ) or High Court judgment: the queen of evidence.
- Deed of acknowledgement of debt signed by the debtor.
- Cheques and promissory notes that were dishonoured.
Level 2: solid contractual evidence
- Signed contract plus invoices issued under it.
- Signed or accepted quotation.
- Signed delivery notes: they prove the goods were delivered.
- Owners' association minutes approving the arrears of a non-paying owner.
- Ledger extracts and accounting certificates.
Level 3: supporting evidence
- Letter before action (send it always — it is also required by the pre-action protocols).
- Emails and letters exchanged with the debtor.
- WhatsApp and text messages where the debtor admits owing the money.
- Bank transfer receipts proving the money was handed over.
Tip: a simple message from the debtor saying "I'll pay you next month" is a written acknowledgement of the debt — and under the Limitation Act it restarts the 6-year clock. Keep every conversation.
When is the documentation handed over to the buyer?
On debtalia, never when you publish the listing: the form only asks you to state which documents exist. Documentation is shared later, when an interested investor requests it, and always at your discretion. At completion, the originals or copies of all documents are annexed to the deed of assignment.
What if I'm missing documentation?
List it anyway, stating what you have: there are buyers for almost everything, although the price will suffer. In parallel, try to strengthen the evidence: request an acknowledgement, send a letter before action, collect the messages. Every new document increases the value of your receivable.
