What if you send a bill to your debtor and it comes back as non-deliverable, or if you try to contact them on the phone number listed in your records and find that it no longer works? Suddenly your past due amount appears to be noncollectable.
The biggest mistake most creditors make is to keep that account aside for weeks thinking what to do about it, even though your repeat attempts to contact the debtor have consistently failed. Waiting on this account any longer means you are letting the account to age further, lowering the chances to recover money from this account even more.
“Skip” Debtor Status: In collections industry a debtor whose contact information has changed or the information provided by creditor is no longer valid is said to be in “Skip” status.