Have You Ever Wondered if You Can Sell a Debt You’re Owed?

Chasing unpaid debts can be frustrating, costly, and time-consuming. Whether you’re a business trying to recover outstanding invoices or an individual owed money, selling a debt could be a way to regain financial control. But how does it work? Is it legal? And what do you need to know before selling a debt in the UK?

This guide explains everything you need to know about debt sales, how they work, and why businesses and individuals choose this route.

Can You Sell a Debt in the UK?

Yes, selling debt is completely legal in the UK and is a common practice used by businesses to recover funds without chasing debtors directly. The process involves transferring the right to collect a debt to a third-party buyer, who then assumes responsibility for securing payment.

However, the type of debt being sold will determine the conditions under which it can be transferred. Non-judicial debts (those not involved in legal proceedings) can typically be sold without the debtor’s consent. Judicial debts (those subject to legal action) require an agreement between the creditor, debtor, and buyer.

Why Sell a Debt?

Businesses and individuals sell debts for a variety of reasons, including:

• Immediate cash flow – Instead of waiting indefinitely, sellers receive an upfront payment.
• Reduced collection costs – Avoid the expense of pursuing debt through legal action or collection agencies.
• Avoiding legal battles – Some debts are costly to recover through court action.
• Expert recovery methods – Professional debt buyers have experience and legal knowledge to recover funds more efficiently.

While selling a debt means receiving less than the full amount owed, it provides a guaranteed payout and eliminates the stress of recovery.

How Does Selling Debt Work?

The process of selling debt is straightforward, particularly when using a trusted debt-buying service. The key steps include:

1. Enter Debt Details

Provide relevant information about the debt, such as:

• The amount owed
• Supporting documentation (contracts, invoices, payment history)
• The debtor’s details

2. Approval and Listing

Once verified, the debt is listed on a marketplace where buyers can review and make offers.

3. Receiving Offers

Buyers assess the debt and submit purchase offers. This ensures competitive pricing and a transparent process.

4. Finalising the Sale

Once an agreement is reached, the debt is transferred to the buyer, and the seller receives payment.

Who Buys Debt?

There are several types of buyers in the UK debt market, including:

• Debt collection agencies – Purchase and recover debts for a profit.
• Investment firms – Buy large debt portfolios as part of financial strategies.
• Law firms – Purchase legal claims and pursue recovery through litigation.

Each buyer has different recovery methods, from negotiating repayment plans to legal action.

How Much Can You Sell a Debt For?

The amount you receive when selling a debt depends on several factors:

• Age of the debt – Older debts are often sold at a lower price.
• Debtor’s financial status – A debtor with assets may result in a higher purchase offer.
• Documentation – Well-documented debts are more attractive to buyers.
• Legal status – Non-judicial debts are often easier to sell than those subject to court proceedings.

Typically, debts sell for a percentage of their face value. The more collectable the debt, the higher the price offered.

Is Debt Trading Regulated?

Yes, debt sales in the UK must comply with several legal frameworks, including:

• Financial Conduct Authority (FCA) – Regulates ethical debt trading practices.
• Consumer Credit Act 1974 – Protects consumers in credit agreements and debt sales.
• Data Protection Act 2018 – Ensures responsible handling of debtor information.
• Consumer Rights Act 2015 – Protects against unfair debt collection tactics.

Reputable debt-buying companies operate within these legal guidelines, ensuring fair and transparent transactions.

What Types of Debt Can Be Sold?

Businesses and individuals can sell different types of debts, including:

• Unpaid invoices – Businesses frequently sell overdue invoices.
• Credit card and loan debt – Financial institutions often sell unpaid accounts.
• Utility and telecoms debt – Unpaid bills from service providers.
• Overdue rent payments – Landlords sometimes sell rental arrears.

However, some debts have limitations, such as secured loans where the lender holds collateral.

When Should You Sell a Debt?

Selling a debt is a good option when:

• Collection efforts have been exhausted – If repeated attempts to recover payment have failed, selling may be the best solution.
• Legal costs outweigh recovery – Court proceedings can be expensive and time-consuming.
• You need immediate funds – Selling a debt provides cash flow instead of waiting for payment.
• Your focus is on business growth – Many businesses choose to sell outstanding invoices rather than waste resources chasing payments.

How to Choose a Debt Buyer

When selecting a debt-buying company, consider:

• FCA authorisation – Ensures the company operates within UK financial regulations.
• Transparent pricing – Look for clear terms and no hidden fees.
• Industry experience – Buyers specialising in certain sectors often have better recovery rates.
• Ethical recovery practices – Ensure the buyer follows responsible debt collection methods.

Alternatives to Selling Debt

If you’re unsure about selling your debt, other options include:

• Debt collection services – A third-party agency recovers the debt on your behalf.
• Legal action – Taking the debtor to court to enforce payment.
• Business process outsourcing (BPO) – Retaining control while outsourcing collection efforts.
• Call fronting services – Using professional communication to encourage payments.
• Multinational collections – Some businesses choose to partner with global agencies to handle international debt recovery.

Selling Debt with We Buy Any Debts

If you want a straightforward way to sell your debt, We Buy Any Debts provides a hassle-free solution. Our platform ensures a confidential, secure, and legally compliant process, allowing individuals and businesses to recover funds quickly.

Why Choose Us?

• Fast transactions – Receive offers and sell your debt quickly.
• No hidden fees – Transparent pricing with no commission charges.
• Experienced buyers – Work with reputable professionals in the debt market.
• Personalised support – Our team assists throughout the entire selling process.

Selling a debt can help regain control of your finances without the stress of ongoing collection efforts. If you’re considering selling a debt, We Buy Any Debts can assist with a smooth and secure process.

Ready to Sell Your Debt?

Get started today by visiting We Buy Any Debts and let us help you recover funds without the hassle of chasing unpaid debts.