Q: Can I sell a debt from another Jew to a gentile who will sue him in civil court?

A: This is not recommended, but if a Jew sold to a gentile a debt document from another Jew, the sale is valid. The seller must accept upon himself (in a halachically acceptable manner) to reimburse the Jewish borrower for any damage arising from the sale, such as if the gentile will collect more than he is entitled to according to Torah law (C.M. 66:25; Shach 66:85; Chiddushei Rabbi Akiva Eiger 66:25).

However, if the borrower refuses to adjudicate in beis din, it is permissible to sell the document to a gentile to collect in civil court, or to give it to him as payment of a debt to the gentile. Some allow this even if the gentile will collect rights not consonant with Torah law, such as interest penalties (see C.M. 26:4; Shaar Mishpat 26:2).