Lending money to a family member, friend or acquaintance is more common than it seems — and so is never getting it back. The good news: debts between individuals can be sold, just like business debts.
Which personal debts can be sold?
- Documented personal loans (written agreement or deed).
- Money sent by bank transfer with a loan reference.
- Signed acknowledgements of debt (IOUs).
- Rent arrears owed by a tenant.
- Debts for services provided as a sole trader to an individual.
What evidence do I need if there is no contract?
The lack of a contract does not prevent the sale, but it does reduce the value. Useful evidence includes: bank transfer receipts, statements, WhatsApp or email conversations where the debtor acknowledges the debt, letters before action and even witnesses. A tip: before selling, try to get the debtor to sign a written acknowledgement of the debt — it multiplies the value of the receivable (and restarts the limitation clock).
Courts routinely accept instant-messaging conversations as evidence, especially when backed by bank records showing the money was actually handed over.
Who buys personal debts?
Law firms handling money claims, small investors specialising in recoveries and debt purchasing companies. They are looking for exactly what you want to let go of: discounted receivables they know how to collect.
The process on debtalia
List your debt for £19.90 stating the type of debtor, city, year and amount. The listing is anonymous: nobody sees your name or the debtor's. When an investor asks for more information, you decide what to share and negotiate the price directly with them.
What it means for the debtor
After the assignment, the debtor must pay the new creditor, on the same terms as before. For you, the relationship is over: you collect the price and stop having to chase someone in your own circle — often the biggest relief in personal debts.
