More Warning Signs of Bad Debts

• The debtor does not return phone calls, letters or emails

• Letters sent to debtor returned undelivered

• The debtor's family says he has moved but refuses to disclose his whereabouts

• The debtor denies responsibility

• The debtor asks you to sue him

• The debtor says, "If you press me, I'll go bankrupt."

• Another creditor has initiated claims against the debtor

• The debtor is a shell company whereby the directors say that they are not personally liable
  
  • This is totally untrue! As a director of a company, the person is liable for its debts etc.

• Change of ownership of company

• There's rumors in industry about debtor experiencing financial difficulties
  
  • If you can, do maintain a good relationship with other customers and working partners in your industry so that you'll be in the grapevine

• Debtor's sector is adversely affected by economic trends
  
  • For eg. You can observe from a retail business that business is slowing down and whether they have enough customers to sustain their business