What is the collection process of bad debt and next time how to recognise these kinds of people?
One of our co – worker cried about his family problems like mother’s ill health, son’s education etc etc and asked a good amunt of money as help on returnable basis. However, after getting his share of help, he became unresponsive and slowly it is turning into bad debt. The worry is the change in our perception to help other people bcos of his bad habit of not paying the dues on the time. Hence to safeguard self, this question. We have decided not to argue, ask and confront him. A: How to collect? IMHO the best way is to take him to court. You’ll have a stronger case if he signed a promissory note or similar written evidence of the debt. How to avoid in the future? Check people’s credit, make them sign a promissory note with a specific repayment schedule, maybe get a cosigner or collateral. Or simply make a “no personal loans” rule. Or don’t make personal “sympathy loans” unless you are willing to lose the entire amount.
