What Distressed Debt Buyers Like

In Debt Collecting, Location Matters, so says the headline of a WSJ article. It didn’t talk about business debt but for any business debt below the small claims threshold amount, the statement probably also applies. Want to know the states that distressed debt buyers (aka collection agencies!) prefer. Read this: “Brokers for distressed debt say investors like states such as Illinois, Maryland and New Jersey, where laws permit them to seize assets such as cars, pension payments and a portion of debtors’ wages. Consequently they try to buy loan pools from those states.” The article also references Indiana, Ohio, Virginia, and Minnesota as great states to pursue debt collection in. Hah! This is excellent information to have.

“Brokers say investors shy away from buying bad debt from some other states.”

“Brokers say geography is the single biggest factor in how much debts fetch. Accommodating laws and judges often mean the difference between a profit and loss on debts pursued in court.”

“In states where laws are more favorable to debt collectors, they pay more for such debt. Unpaid consumer debt sells for about seven cents on the dollar in Indiana, compared with two cents in Texas.”

Just be aware. To read more of this full length article, In Debt Collecting, Location Matters, you’ll have to grab Monday’s copy of the WSJ or subscribe to WSJ online.

Advertisements

About Tiffany C. Wright - The Resourceful CEO

Tiffany C. Wright is the author of “The Funding Is Out There! Access the Cash You Need to Impact Your Business” and “Solving the Capital Equation: Financing Solutions for Small Businesses.” She is the founder of The Resourceful CEO, which helps owners of small/medium-sized businesses prepare their businesses for sale. Tiffany has an MBA from the Wharton School of Business, sits on non-profit boards and serves as a business mentor with the Cherie Blair Foundation.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s