In the world of debt collections, there is a harsh reality we face: Not every debt is collectible.
Fact is, there are those accounts that are simply not worth the time it will take and the money it will cost to chase them down. Between the expenses associated with investigation, possible court costs and attorney fees, (let alone the high emotional toll) it’s better to just let it go.
Making the decision to write it off as a dead-end account is a hard one. But if you see the following signs, you must accept that you’ve reached that point.
• Out-of-business corporate debtor
• Small delinquency
• Bankruptcy
Naturally, you and your collection agency will do everything possible before bidding an account a final farewell. However, if you do come to the conclusion that the account is not collectible, our best advice is this: move on immediately to the accounts that ARE. Don’t waste any more energy, time or money worrying over what can’t be changed.
How about it? Have you had to make this difficult decision?