heres a question........... 25 May 2020 at 7:57PM in Bankruptcy & living with it 5 replies 221 views

maxmycardagain

If a debt is sold on does the original debt fall off the persons credit file?

Can the buyer of the debt re-register it as a debt or different debt?

TIA

mwarby

I think the original debt is removed, the buyer of the debt will pretty much always reregister the debt. 

The default date of the new debt can’t be any newer than the old debt, and in insolvency should be no later than date you were made insolvent 

maxmycardagain

anybody know a typical percentage a debt gets sold on for?

sourcrates

The correct procedure is thus, the original creditors entry should show the date of default, and a zero balance.
The new owners entry will show the same default date, and the outstanding balance.
Some people mistakenly think they have two defaults for the same debt, they don’t, it’s just the one default, both should show the same default date.
Debts are bought for pennies in the pound, the exact amount is a closely guarded business secret.

fatbelly

maxmycardagain said:

anybody know a typical percentage a debt gets sold on for?

10%
There was a whistleblower interviewed a few years back. He said the range is 6-16%

ToxtethO'Grady

The percentage of the debt being sold depends on the 'book' of debt and how much work the debt collectors would have to do. I have sat in on a negotiation and it was really small the percentage offered and accepted for the amount of debt. Best analogy in debt circles is with the pence in the pound an IVA has and it will always be lower than that.

So if 300,000 small debts worth £500K were being sold they'd offer/accept a smaller percentage as there's more work to be done collecting. 15 debts of £500K would have a higher percentage due to, what should be, less work to claim or take further, however bigger debts usually go to court and enforcement a lot quicker than small debts so it's rare they get sold on to DCA.

Mortgage companies will usually keep the debts for themselves, pass to a solicitors to manage the CCJ or sell them to another mortgage company that is used to debt management/collection.