How to Sell a Debt Portfolio
Seller checklist for preparing charged-off portfolios.
A practical checklist for institutional creditors preparing a charged-off portfolio for market.
1. Define the pool
Segment by asset class, charge-off vintage, geography, balance tiers, and status flags (BK, deceased, dispute, litigation).
2. Build a buyer-ready data tape
Include account identifiers, original creditor, open/charge-off dates, balances, last pay, interest/fees where relevant, and placement history.
3. Assemble chain-of-title
If the paper has moved, document each assignment. Incomplete title is one of the fastest ways to reduce bids or stall close.
4. Choose sale structure
Spot sale vs forward flow depends on volume predictability and internal recovery strategy.
5. Run a competitive process
Qualified buyers, clear bid deadlines, and consistent data access produce better price discovery.
6. Close cleanly
PSA terms, funding mechanics, cut-off dates, and secure file transfer should be planned early.