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The Warning Signs of Bankruptcy: What Creditors Should be Watching For

Originally published: February 2014


Data from The Administrative Office of the U.S. Courts indicates that the overall number of bankruptcy filings have declined over the past few years, which is great news for U.S. creditors. Nevertheless, learning that even one customer may be facing bankruptcy is enough to send a creditor into tailspin – especially if that customer makes up a large percentage of the company’s business. What can you do to prepare your company for a client's impending bankruptcy filing? What are the warning signs you should be looking for; and what can you do to diminish your company’s risk?

This article outlines some of the most common signals of a failing company and summarizes a few best practices for minimizing the repercussions for creditors.