In the context of debt collection, what is a 'skip'?

In the realm of debt collection, a 'skip' refers specifically to a debtor who cannot be located by a creditor. When an account is assigned for collection and the creditor finds that they are unable to reach the debtor at the last known contact information, the debtor is classified as having "skipped." This term highlights the challenges creditors face in tracking down individuals who have moved or changed their contact details without informing the creditor.

This situation can lead to additional efforts and costs for the collection agency as they attempt to find the debtor through various means, such as skip tracing, which involves employing various techniques and databases to locate individuals who are hard to find.

The other concepts presented, such as a debtor avoiding payment, being declared bankrupt, or being in negotiation, do not specifically define the situation where a creditor is unable to establish contact, which is the essence of a 'skip.'