Legal Question in Business Law in California

Nothing that a suspended or otherwise not in good standing corporation does is legally valid or binding. You can't sue, you can't legally conduct business because all agreements and contracts are invalid, etc. So you can't legally sell the debt either. The good news is that in almost all cases, everything the corporation did while suspended or otherwise not in good standing is retroactively validated once the corporation cures it's status. So the thing to do is clean up your corporate situation and then just file a court case to collect the debt.

Mr. McCormick is correct, The usual reasons for suspension are (a) failure to file and pay corporate taxes with the Franchise Tax Board, and (b) failure to file a periodic Statement of Information with the Secretary of State. If your corporation is suspended, you'll need to obtain a certificate of revivor before the corporation can go into a California court or transact any business here (other than changing the corporate name or correcting the reason for suspension). If there is litigation pending or another emergency, revivor from non-payment of taxes can be obtained by appearing in person at the FTB (or SoS).

Information can be found via the following link: http://www.northwestregisteredagent.com/reinstate-revive-california-corporation.html

Attempting to collect a debt by any means, including selling the debt to another entity, may backfire if the debtor is knowledgeable about the law.