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Can a creditor offer a debt owed to him to another creditor

Can a creditor offer a debt owed to him to another creditor

Postby south1 » Fri Jul 12, 2013 11:27 am

I have a debtor and I have contacted one of his others creditors so that to make an agreement to share information so that to help the enforcement of our respective court judgments. The others creditors has replied to me that he has no intention to waste time and money to pursue our common debtor. Hence I am wondering if it is not possible that the other debtor offers me the debt owed to him by our common debtor so that I enforce it at the same time as the debt that this debtor owed also to me. Otherwise the money owed to the other creditor by our common creditor will be lost for ever.

I would like to know which documents should be filed to make this agreement. Maybe we can make an agreement so that I pay to the other creditor a percentage of the money that I recover if he offers me the debts owed to him by our common debtor
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Re: Can a creditor offer a debt owed to him to another credi

Postby dls » Fri Jul 12, 2013 1:09 pm

You can buy the right to the debt from another creditor, but be very careful. It cannot be worth a lot and may be worth nothing.
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Re: Can a creditor offer a debt owed to him to another credi

Postby atticus » Fri Jul 12, 2013 3:35 pm

I'd concentrate on getting what is owed to you. Let your competing creditor look after himself, if he wants.
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Re: Can a creditor offer a debt owed to him to another credi

Postby landlordnightmare » Fri Jul 12, 2013 3:48 pm

dls wrote:You can buy the right to the debt from another creditor, but be very careful. It cannot be worth a lot and may be worth nothing.


A large generalisation - trading debt can be very lucrative. There is a massive market. OK on this scale I agree it is unlikely, but large debts can easily jump 100% in value (e.g from being worth 5 cents on the dollar to 10 cents on the dollar) very quickly.

atticus wrote:I'd concentrate on getting what is owed to you. Let your competing creditor look after himself, if he wants.


Not necessarily sensible, if the other debt is large and you can get it for 1p in the pound your costs of pursuing both debts is likely to be very similar to persuing just one debt (if there is any chance whatsoever of any recovery). And if it does get as far as insolvency it is likely all non preferential creditors will be treated pari passu (i.e. equally in proportion to the debts they own).
Note: I am not legally qualified, just been around a few blocks. The sorry cynic.
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Re: Can a creditor offer a debt owed to him to another credi

Postby south1 » Mon Nov 18, 2013 10:23 am

I have a debtor who has also at least another creditor. This other creditor did not want to pursue our common debtor.
If this creditor accept to offer me the debt of our common debtor I think that he has to write me a letter and I would like to know which information he should put in this letter and which documents he should provide to me so that the transfer of the debt is legal and enforceable. I would like not to give too much extra work to the other creditor so I need to know what to tell him in the letter that I intend to write to him.
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Re: Can a creditor offer a debt owed to him to another credi

Postby atticus » Mon Nov 18, 2013 1:25 pm

It is, in effect, a contract of sale. You set out the parties,what is being sold (the debt of £X owed to Vendor by Y), and the price.

The Purchaser must give the debtor notice of assignment of the right to receive payment.
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Re: Can a creditor offer a debt owed to him to another credi

Postby south1 » Mon Nov 18, 2013 9:57 pm

Nothing is bought nothing is sold. I would like he offers me the debt or maybe we can enter in an agreement in which I will pay him a percentage of the money that I will succeed to recover
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Re: Can a creditor offer a debt owed to him to another credi

Postby atticus » Mon Nov 18, 2013 10:04 pm

That sounds an awful lot like buying the debt to me.
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