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UNCOLLECTED MONEY? SELL THE DEBT

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UNCOLLECTED MONEY? SELL THE DEBT

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IF THEY OWE YOU MONEY, SELL THE DEBT



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LAST DEBTS FOR SALE




GALENA, ILLINOIS INDIVIDUAL SELLS DEBT OF $6,500 AT THE PRICE OF $5000


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640 admin
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admin2024-10-11 11:30:292024-10-11 11:30:29Galena, Illinois Individual sells
debt of $6,500 at the price of $5000


MENTONE COMPANY SELLS DEBT OF $46,000 AT THE PRICE OF $25,000


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426 640 admin
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admin2024-09-26 17:04:302024-09-26 17:04:30Mentone Company sells debt of $46,000
at the price of $25,000


PITTSBURGH, PENSILVANIA COMPANY SELLS DEBT OF $6000 AT THE PRICE OF $3000


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admin2024-09-10 09:53:332024-09-10 09:53:33Pittsburgh, Pensilvania Company sells
debt of $6000 at the price of $3000


SPRINGFIELD COMPANY SELLS DEBT OF $6500 AT THE PRICE OF $3000


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admin2024-07-31 16:44:402024-07-31 16:44:40Springfield Company sells debt of
$6500 at the price of $3000


BAKERSFIELD COMPANY SELLS DEBT OF $78,440.52 AT THE PRICE OF $50000


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admin2024-07-11 07:55:342024-07-11 07:55:34Bakersfield Company sells debt of
$78,440.52 at the price of $50000


LAS VEGAS INDIVIDUAL SELLS DEBT OF $176,000 AT THE PRICE OF $100000


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admin2024-07-02 15:50:552024-07-02 15:50:55Las Vegas Individual sells debt of
$176,000 at the price of $100000


BOISE (IDAHO) COMPANY SELLS DEBT OF $18,440.33 AT THE PRICE OF $15000


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admin2024-06-27 11:56:242024-06-27 11:56:24Boise (Idaho) Company sells debt of
$18,440.33 at the price of $15000


PROVIDENCE INDIVIDUAL SELLS DEBT OF $75000 AT THE PRICE OF $50000


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admin2024-06-11 15:48:272024-06-11 15:48:27Providence Individual sells debt of
$75000 at the price of $50000


TIGARD INDIVIDUAL SELLS DEBT OF $60000 AT THE PRICE OF $35000


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admin2024-05-06 15:40:192024-05-06 15:40:19Tigard Individual sells debt of
$60000 at the price of $35000
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Debt Purchase Agreement




BUYING AND SELLING OF DEBTS IN THE UNITED STATES

Every year in the United States thousands of people file for bankruptcy because
they cannot pay their medical, travel or miscellaneous debts, here we will talk
about some solutions and how people should address them.

The debt buying industry in the United States has seen a dramatic expansion in
recent years.

Of course there are many legitimate debt collection companies that, following
legal processes, demand payment of obligations owed to companies that would go
bankrupt if they did not pursue debtors.

> But when companies that specialize in debt collection become owners of that
> debt, they are more inclined to target higher returns and employ unethical
> practices.

There are debt collection regulations established by consumer protection
agencies. For example, they prohibit deceptive practices such as threatening the
debtor with arrest. But many intimidation tactics have been reported.


SELL A DEBT: MEANING AND CONCEPTS

Oliver showed attendees at a debt collectors’ conference on his show, and some
industry professionals joked about “bullying” their victims and ruining their
lives. The presenter stated that the purchase of a debt tends to be a shady
business.

But regulation is insufficient. In more than half the states in the country,
debt can be purchased legally without a license to do so. And in 17 states, no
license is needed to collect them.

There is also very little documentation associated with these debt collection
operations, which is a problem when some cases go to court, according to a
report by the human rights organization Human Rights Watch.

When institutions sell lists of debtors, they do not guarantee that the
information is correct.

> Let’s get into a little bit of what the basics are about debt buying and
> selling in the United States.

If you’re like most consumers, you’ve probably never heard of debt buyers, but
you may have dealt with one if you’ve ever had a debt in collection.

Debt buying has become a big industry in the United States, where companies buy
portfolios of unpaid debts from creditors for pennies on the dollar.

They then start calling you to pay more to make a profit on the debt they have
purchased, selling your debt to a buyer has advantages and disadvantages.


WHAT IS A DEBT BUYER?

A debt buyer is a company that acquires outstanding debts for just a few cents
on the dollar. They are also known as “junk debt buyers” or junk debt buyers
(JDBs).



When you default on a debt, the creditor writes off your account, which means
you appear as a loss to them.

For a time, they may attempt to collect the debt from you, either through their
internal collection department or through a collection agency that attempts to
collect on your behalf.

Ultimately, however, they may decide to sell your account in a written-off debt
portfolio to another company. When they do so, the company pays them for their
bad debt, which means they recoup part of their losses.

> The cost of buying back your debt typically ranges from $0.04 to $0.14 on the
> dollar. Therefore, if you have $10,000 in debt and the debt buyer purchases it
> for ten cents on the dollar, you may pay $1,000 to buy your debt.
> 
> You still owe the $10,000, but you would pay this money to the debt buyer
> instead of to your creditor. Any money you collect above the $1,000 purchase
> price is the profit you make on this high-risk investment.

A debt buyer can then attempt to collect the debt, contact a third party to
attempt to collect on your behalf, or sell the debt back as part of another
portfolio. As a result, your overdue debt may be bought and sold multiple times.


HOW DOES DEBT BUYING WORK?

Of course, debt buyers don’t buy one debt at a time. They buy large portfolios
of delinquent debt from credit card issuers.

Of the six major U.S. credit card issuers, five of them use debt buying as a
means of recovering money for unpaid debts.

While they may receive less than five percent of the total amount owed, they at
least reduce their losses.

Debt collection is a $12 billion industry in the U.S., and credit card debt
accounts for 70% of the debt acquired by debt buyers, so it is very likely that
if your credit card debt is written off, it can be sold to a debt buyer.



Debt buyers take on a lot of risk when acquiring these portfolios.

Generally, a debt collector is a person or company that is usually in the
business of collecting debts owed to others or whose primary purpose is to
collect debts. They are probably contacting you because they are trying to talk
to a person who may owe a specific debt.

Debt collectors can be either collection agencies or legal professionals who
specialize in the collection of debts as part of their professional activities.
There are also companies that buy overdue debts from creditors or other
businesses and then try to collect them. These debt collectors are known as
“debt collecting agencies”, “debt collecting companies” or “debt buyers”.


REASONS WHY A DEBT COLLECTOR WILL CALL YOU

 1. A debt collector may try to contact you for the following reasons:
 2. A creditor believes you are behind in paying a debt. Lenders may use their
    own debt collectors or refer or sell your debt to a third party.
 3. A debt collector may also be calling you to locate someone you know, but is
    not authorized to disclose that the consumer owes a debt.
 4. A debt buyer has purchased the debt and now wants to collect it on its own
    or hire other debt collectors.

If the collector contacts you to demand payment of a debt, there is certain
information the collector must give you in the initial communication or within
five days of the initial communication.

If you believe you do not owe the debt or that the amount is incorrect, you may
dispute it with the debt collector and the credit reporting company, if the debt
appears on your credit report.

If you dispute the debt in writing within 30 days of the collector’s receipt of
the required information about the debt, the collector must send you
verification of the debt. You may also request additional information from the
debt collector.


DEBT PURCHASE PROCESS

Certainly, debt buyers typically do not purchase debt on an individual basis.
They buy large portfolios of delinquent debt from credit card issuers.

Of the six major U.S. credit card providers, five use debt buying as a way to
recover money for unpaid debts. Although they may collect less than five percent
of the total due, they at least cut their losses.

> Debt collection is a $12 billion USD business in the United States, and credit
> card debt accounts for 70% of the debts acquired by debt buyers, therefore, it
> is very probable that, if your credit card debt is canceled, it can be sold to
> a debt buyer.

Debt buyers take on a great deal of risk when acquiring these portfolios. They
are usually a mix of different levels of delinquencies. It is like buying a
warehouse at auction or a number of items on eBay.



You might end up with one or two cards that are really worth something, but the
remainder are largely useless.

Debt buyers take risks on the assumption that they can recover their investment
in relation to at least part of the debt included in the investment portfolio.

At times, they might opt to resell the portfolio to another debt buyer or divide
it into smaller portions to accommodate debt buyers with limited capital.


HOW DO DEBT BUYERS BREED ZOMBIE DEBTS?

Have you ever had a collection account that you thought you had resolved, but it
keeps coming back to try to bite you? Do you settle with one collector and then
get called by another? Or do you send a cease-and-desist letter to one, only to
have another one call you for the exact same debt?

> This is what people call zombie debt. No matter how many times you think
> you’ve killed it, it keeps popping up.

In most cases this is an irritating by-product of debt purchase. You may deal
with a debt buyer, only to have them sell your account to another buyer.

This can happen even if:

 * You have sent a cease-and-desist order.
 * Has demonstrated that the debt collector did not have complete information to
   validate the debt
 * The debt is time-barred
 * You paid a settlement

If you are contacted by a new collector regarding an account, you have already
taken care of, simply go through the debt validation process again.

They are usually a mix of different levels of delinquencies. It’s a bit like
buying a storage unit at auction or a selection of merchandise on eBay.

You may end up with one or two cards that are actually worth something, but the
rest are mostly worthless.

> Debt buyers take on risk with the assumption that they can earn a return on
> their investment with respect to at least some of the debt included in the
> portfolio.

In some cases, they may simply resell the portfolio to another debt buyer or
split it into smaller strips for debt buyers with less capital.


WHAT DOES IT MEAN TO SELL DEBT?

As a consumer, you may not think there is much difference between dealing with a
debt collector working on behalf of a creditor and dealing with a debt buyer.
However, there are some differences. Some play to your advantage and some do
not.


DISADVANTAGE

When an account is sold to a third party, a collection account is created on
your credit report. The original account balance will be updated to zero because
you no longer owe anything to the original creditor.

> The new collection account will remain there for seven years from the time the
> original account became delinquent.
> 
> This is not good for your credit. Collection accounts will make you look like
> a higher risk borrower to creditors reviewing your credit report.

The account will also negatively affect your credit score. As a result, you may
pay higher interest rates or even be turned down for loans and credit card
applications.


ADVANTAGE

Debt buyers get your debts fot just a few cents on the dollar. That means you
can usually negotiate a lower percentage to pay off the debt.

> A creditor or collection agency working on your behalf will want to get as
> much money as possible, since anything not paid in full is a loss to them. On
> the other hand, a debt buyer can settle for 20% or 30% of what you owe and
> still make a profit.

Therefore, if you know you are negotiating with a debt buyer, start at the
bottom of the negotiations. A lowball offer may work.


HOW TO SELL DEBT EFFECTIVELY?

They decide to sell debt because unpaid companies can recover part of their
liquidity, even though they often only manage to recover about 4% of the total.

But, it is profitable because the lenders avoid their expenses to manage the
files of their debtors. Likewise, they avoid the heavy work of follow-up and
legal advice to try to collect the debts.

The debts are bought because the legal experts in collections know the details
to recover their investment with juicy benefits, since when they buy debts they
obtain important disbursements, collecting what the defaulters owe.




IDEAL CONDITIONS TO SELL A DEBT

The defaulters are confident that by selling debt this is exhausted, given its
expiration date according to the law, but when a debt collection company buys a
debt is because it has methods to exercise their collection, they are sure to
make a profit, so they appeal to the judicial means and also, each type of debt
varies in conditions and expiration.


PUTTING A DEBT UP FOR SALE

Many times the collection companies do not go to court, but send the
communication to the debtor notifying the company’s claim. It should be noted
that the expiration of a debt is not interrupted, but the statute of limitations
can be interrupted and modifies the conditions of any claim.

The maximum period for the expiration of a debt is five years in the case of
regular payments, starting from the due date of the financial obligation of
payment of a monetary or credit debt.

Companies resolve to sell debt of their clients within the legal framework,
since bank and credit financing contracts usually include agreements between the
entities and their clientele that allow creditors to sell debt, without prior
authorization from the debtor.

Debtors cannot refuse to pay a collection company that has purchased their debt,
since the assignment of the receivables simply changes the ownership of the
receivables and the obligation to pay continues with the new creditor.

Debtors continue with the duties and guarantees they acquired with the debt,
according to the Civil Code in force.

> When the outstanding debt is given in credit assignment to a debt collection
> company, it is important that they check that the data have been obtained
> legitimately, so that it is a legal collection and has a stable legal
> relationship between the company and the client.

In this case, the collection agency uses the debtor’s data and verifies that
when selling debts they are monetary, liquid, overdue and really due in a legal
process.

Also, they make sure that the debtor has been informed of the possibility of
being included in the debt collection file and that the debt actually requires
payment.

Another fact verified by debt collection agencies is that the debt has not been
claimed judicially or administratively by the debtor or through an alternative
dispute resolution process by binding consumer arbitration and that the amount
of the debt is greater than 50 dollars

> However, problems and irregularities arise when the agencies that purchase
> debts commit illegal practices such as coercion or use deceptive collection
> strategies, assuming violent tones when collecting.

Likewise, it is very common for these collection companies to address debtors in
derogatory terms, hide information or assume derogatory or threatening attitudes
that are out of touch with reality.

These are intimidating practices to exercise legal proceedings against debtors.

These are threatening practices that can be denounced and that have had
precedent condemnatory sentences, such as the condemnation of an employee and a
debt collection company as a subsidiary civil liability, since they used
intimidating practices against a defaulter.




WHAT ARE ZOMBIE DEBTS?

A zombie debt, as the name implies, is an old debt that has long since left your
memory and possibly your credit reports. These old debts are usually bought by
collection companies for pennies.

> The collection companies then turn around and try to collect the entire debt
> from the consumer. Many times, the collection companies do not have the legal
> rights to collect the debt.
> 
> They count on the consumer to make a wrong move to bring the zombie debt back
> to life (and legal rights).

The most common types of zombie debt are credit card debt or medical bills. It
may be a debt that you do owe, debts that you have previously settled with the
original creditor, or even debts that are not yours at all.

Usually, the debt is so old that Florida law does not allow the debt collector
to sue you.


IS SELLING DEBTS IN THE UNITED STATES LEGAL?

Selling debts from one creditor to another can be done without seeking your
permission, but with your knowledge. According to the law, the consumer must be
notified in writing, this document is known as a “debt validation” within five
days of the collector’s initial attempt to contact you.


THE LARGEST DEBT BUYER IN THE U.S

Within the United States there are about 1,000 debt collectors and debt buyers.
Encore Capital Group, in San Diego, California, and its affiliates make up the
largest debt buyer and debt collector in the country.

> Encore, as a debt buyer, purchases past-due debt at a discount from the face
> value of the debt.

Despite paying a lower amount for the loan, they are able to collect the full
amount requested by the original lender. They obtain the right to reclaim
overdue debts, such as credit cards, phone bills, among others.


STEPS TO SELL A DEBT IN UNITED STATES

The practice to sell debt and a list of defaulters by certain entities is a
legal action and is intended for others to try to collect outstanding defaults
from financial institutions. But some patterns assumed for these sales may be
illegal.

Companies that buy debts and then reclaim them, acquire debts that have
accumulated from financial entities, since they have not been able to collect
the amounts owed to them by their debtors and prefer to sell the list of
defaulters so that they can try to collect from them, since they can recover
part of the outstanding monetary commitment for that concept of selling debt.

> Every year in the United States thousands of people file for bankruptcy
> because they are unable to pay their debts related to medical treatment.

In many cases they have no health insurance or the one they have is
insufficient.
A few days ago, U.S. television presenter John Oliver bought and forgave US$15
million in medical debts, thus helping around 9,000 people who had been left
bankrupt by the astronomical bills they faced when being treated for serious
illnesses.


HOW TO SELL DEBT TO THIRD PARTIES?

Some companies are trying to solve their financial problems by selling debt.
This will help companies to survive in the market and not have to resort to
closure or other extraordinary measures.

In order to sell debt, companies follow the following procedure: The amount of
debt to be sold is decided and published in the U. S. Securities and Exchange
Commission.

> Companies have the option to buy this debt. When the request is received from
> other companies, the conditions of the purchase are negotiated.

At the time the agreement is reached the buying company will own the
proportional part of the company with respect to the debt purchased. Until the
selling company does not return the money to the buying company, they will own
the proportional part of the company.

And in the event that the proportional part is not returned to the purchasing
company, they will permanently own the proportional part of the company.


WHAT TO DO TO SELL BANK DEBTS?

Selling bank debts will always be a good option, but it may be more beneficial
than you think.

If you are already in debt and debts are starting to be a headache for you, the
financial products market can offer you a solution.

That is why you should take advantage of the benefits it offers you and find the
best conditions to refinance your debts.

Here we will show you some useful steps you can follow to sell your bank debt:


1.- FIND THE ENTITY THAT BEST SUITS YOUR BANK DEBT NEEDS.

There are banks or entities that specialize in small and medium companies, high
segment employees, contractors, independents, etc.

You must define which segment you are in, since financial entities have
specialized in each niche and this will be of great help to you.


2.- CHECK HOW LONG YOU HAVE BEEN PAYING OFF YOUR DEBT

If the debt exceeds 50% of the time, it is not a good idea to sell it, because
you have already paid a good percentage of the capital.

You should always check this carefully, because it is very feasible that the
debt can start again from scratch.


3.- REVIEW THE ADDITIONAL EXPENSES OF YOUR PORTFOLIO.

If you get a better rate, but the fees go up with insurance, handling fee and
legal review, you are not getting anywhere.

You should review the costs of these variables, since generally all insurances
include these items.


4.- CAREFULLY REVIEW YOUR MORTGAGE CREDIT DEBT

Mortgage loans are usually the longest, ranging from five to twenty years, which
can cause you financial stress. In order to sell the mortgage loan, it is
important to take into account elements such as: length of time, appraisal,
appraisal, title search and attorney fees.

After you have carefully reviewed these factors with a financial advisor, you
should make a final decision.


5.- DEVELOP A BUDGET TO PAY OFF YOUR PORTFOLIO.

Before spending, you must earn, so adjusting your income and expenses is key if
you want to have a new loan.

It is useless to sell your debt if your income cannot cover your debts, if you
are not clear about this you will be back to square one.


6.- IF YOU SOLD YOUR DEBT, IT IS NOT ADVISABLE TO LEAVE OTHER CREDIT QUOTAS
OPEN.

You have already solved the problem of your debts and sold your obligations to
the best option, but you still have credit quotas available.

The best decision is not to use them or cancel them, since it is very likely
that you will be tempted to contract new debts and return to the starting point.

Finally, remember that credits are not bad, the bad thing is not knowing how to
use them, that is why you must have great responsibility with your payments at
the moment of acquiring a new obligation, remember that your peace of mind will
depend on your good decisions.


ADDITIONAL INFORMATION ABOUT THE DEBT SALE PROCESS

Although it is not necessary to obtain the debtor’s consent to sell the debt, an
official communication must be sent to the debtor in question.

Normally, the previous creditor will send a letter informing of the assignment
or it will arrive in the same envelope as the new creditor’s demand for payment.
Subsequent payments should be paid to the new creditor and all contact with the
previous creditor should be stopped.

Any agreement or negotiation on the debt must be made with the new creditor and
payment must be made on your account.

Along with the assignment of the debt, the previous creditor will communicate
all rights, duties and information to the new creditor, who will have become the
only entity with the power to decide on the debt.


WHO BUYS THE DEBTS OF FINANCIAL INSTITUTIONS?

If we find ourselves in this situation, who should we contact: the bank, the
entity or the collection agency? There is nothing to worry about: in general,
this assignment of receivables is usually good news.

First of all, it is important to be clear that a creditor (the entity to which
the money is owed) can sell the debt to another company or institution, just as
a good or a service can be sold.

It does not matter if the term expired three months or three years ago, if it
corresponds to some outstanding installments for the purchase of a computer or
an overdraft of the bank account for the loan granted, for example.

These debt sale or assignment operations are usually carried out by banks,
financial institutions, insurance companies and other institutions.

This operation is contemplated by law, occurs everywhere in the world and does
not require the debtor’s consent.

In legal language it is known as assignment or transfer of receivables. In
Spain, it is expressly regulated in the Civil Code. This can occur with almost
all debts, except for some contemplated by law.


DO THEY OWE YOU MONEY? SELL THE DEBT.


FAQS ABOUT DEBT SELLING IN USA



We will now present some FAQs that may arise when selling a debt, there are many
questión surrounding this topic, however we consider these are the more
important FAQs on this matter.

WHAT DOES DEBT SELL MEAN?

Selling a debt consists of transferring it to a specialized company, which
provides liquidity to the original creditors, who obtain a part of it without
resorting to collection processes, which can entail more costs.



HOW TO SELL DEBT EFFECTIVELY?

The practice of selling debt and a list of defaulters by certain entities is a
legal action and is intended to allow others to try to collect outstanding
defaults from financial institutions. But some guidelines assumed for these
sales may be illegal.



WHAT ARE THE BENEFITS OF SELLING DEBT?

They decide to sell debt because the defaulted companies can recover part of
their liquidity, even though they often only manage to recover about 4% of the
total. But it is profitable because the lenders avoid their expenses to manage
the files of their debtors.

In the same way, they avoid the hard work of follow-up and legal guidance to
achieve debt collection.

The debts are bought because the legal experts in collections know the details
to recover their investment with juicy benefits, since when they buy debts they
obtain important disbursements, collecting what the defaulters owe, this is one
of the most important FAQs to know.



WHAT DOES IT MEAN THAT A BANK BUYS YOUR DEBT?

A debt buyout is an alternative offered in the financial system to transfer the
debts owed to the bank.



WHO BUYS MY DEBT?

Debt collectors may be collection agencies or attorneys who collect debts as
part of their business. There are also companies that buy overdue debts from
creditors or other businesses and then try to collect them.



WHY IS DEBT SOLD?

Let’s look at the reasons or benefits why a company decides to sell its
outstanding receivables:


OBTAINING LIQUIDITY

Selling debt represents a way for companies that have suffered a default to
recover liquidity. However, it must be taken into account that the total amount
owed is not even close to being repaid. Sometimes not even 4% of what was
outstanding is recovered.


SAVINGS IN COLLECTION COSTS

The management of unpaid debts entails costs and hours of work for companies.
This with the added uncertainty of whether or not they will be compensated with
the recovery of the outstanding payment. When debt is sold, the purchasing
company is the one that takes control of all the debt.


LACK OF EXPERTISE

In addition, it requires exhaustive follow-up work and also legal knowledge in
order not to incur in any infringement during the recovery process. The
companies buying the debt are experts in the field and have the necessary legal
knowledge.

This will make it easier to follow up on the debt and more likely to succeed.



WHAT IS A DEBT BUY-DOWN?

The debt discount is a discount applied to the debt, which is usually 50% of the
amount of the debt. Debt collection companies offer debt write-offs in order to
be able to acquire the right to the debts after evaluating them.



WHAT HAPPENS WHEN THE BANK SELLS MY DEBT?

When the bank sells a debt, the first thing the debt holder must do is to find
out who the new creditor is. The sale of a debt (called an assignment of
receivables) is a legal action, therefore, no right to sue is generated.



HOW TO SELL A DEBT TO A THIRD PARTY?

Some companies try to solve their financial problems by selling debt. This will
help companies to survive in the market and not have to resort to closure or
other extraordinary measures.

In order to sell debt, companies go through the following procedure: The amount
of debt to be sold is decided and published in the National Securities Market
Commission.

Here companies from all over the world have the option to buy this debt. When
the request is received from other companies, the conditions of the purchase are
negotiated.

At the moment the agreement is reached the buying company will own the
proportional part of the company with respect to the purchased debt. Until the
selling company does not return the money to the buying company, they will own
the proportional part of the company.

And in the event that the proportional part is not returned to the purchasing
company they will permanently own that proportion.

These are some of the FAQs that people have when they decide to sell a debt and
it is important that we also take into account the legislations that regulate
these procedures, as they vary according to the country or city.


NEWS ABOUT THE DEBT SELLING IN THE UNITED STATES





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