The debtor owes you $50,000. You call — disconnected number. You email — bounces back. You drive to their office — closed, lease expired. They've vanished.
Now what?
This is where skip tracing comes in. Professional debt collectors use investigative techniques to locate missing debtors, identify hidden assets, and recover debts that seem uncollectible.
This guide reveals the tools and strategies collection agencies use to find debtors who "disappeared" — and how you can apply some of these techniques yourself (legally).
What is Skip Tracing?
Skip tracing = Locating people who have "skipped town" to avoid debt or other obligations.
Origin: Comes from "skip" (someone who left without paying) + "trace" (track down).
Who uses it:
- Debt collectors
- Private investigators
- Bail bondsmen
- Attorneys
- Process servers
In debt collection: Skip tracing is used to find debtors who:
- Changed phone numbers
- Moved without forwarding address
- Closed their business
- Created new business under different name
- Are hiding assets to avoid payment
Why Debtors "Disappear"
The 4 Types of Missing Debtors
1. Accidental Skip (20%)
- Changed phone number, forgot to update creditors
- Moved for legitimate reasons (job, family)
- Not avoiding debt, just poor communication
2. Strategic Skip (40%)
- Intentionally avoiding creditors
- Changed contact info to stop collection calls
- Still operating business but under different name
- Playing "hide and seek" to delay payment
3. Dissolved Business Skip (30%)
- Business closed/dissolved
- Owner started new LLC to "leave debt behind"
- Assets transferred to new entity
- Legitimate business failure + avoidance
4. True Vanish (10%)
- Left state or country
- No forwarding address
- May be insolvent, homeless, or incarcerated
- Genuinely impossible to locate
The key: Types 1-3 are findable. Type 4 may be uncollectible.
Skip Tracing Tools & Databases
What Professional Agencies Use
1. TLO (TransUnion) - $50-$200/month
- Comprehensive people search database
- Phone numbers, addresses, relatives, associates
- Property records, liens, judgments
- SSN trace, employment history
- Real-time updates
2. LexisNexis Accurint - $100-$300/month
- Similar to TLO, more legal-focused
- Court records, bankruptcies, criminal history
- Business affiliations, professional licenses
- Asset searches
3. Clear (Thomson Reuters) - $150-$400/month
- Public records aggregator
- Property ownership, vehicle registrations
- Business filings, UCC liens
- Social media monitoring
4. Spokeo/BeenVerified - $20-$40/month
- Consumer-level skip tracing
- Phone numbers, email addresses, social media
- Less comprehensive than TLO but cheaper
5. PACER (Federal Court Records) - $0.10/page
- Federal bankruptcy filings
- Federal lawsuits
- Judgment searches
- Free if under $30/quarter
6. County Clerk Records - Free (but time-consuming)
- Property records
- Business filings
- Marriage/divorce records
- Local court judgments
What you can't access (without license):
- Credit reports (FCRA restricted)
- Bank account information (requires subpoena)
- Phone records (illegal without consent)
- GPS location tracking (illegal stalking)
How to Skip Trace (DIY Methods)
Free & Low-Cost Techniques
1. Google Everything
- Debtor's name + city
- Business name + "new location"
- Owner's name + "new business"
- Phone number reverse lookup
- Email address search
Pro tip: Use Google operators
"John Smith" Dallas -LinkedIn(exclude LinkedIn)site:facebook.com "John Smith" Dallas"555-1234"(exact match search)
2. Social Media Stalking (Legal)
- Facebook, LinkedIn, Instagram, Twitter
- Look for:
- Current employer
- New business ventures
- Location check-ins
- Friends/family connections
- Photos with identifiable locations
3. Property Records (Free)
- County appraisal district websites
- Search by name or business
- Shows real property ownership
- Mailing addresses on file
Texas example: Harris County Appraisal District
4. Secretary of State Business Search (Free)
- Find LLC/corporation filings
- Registered agent name and address
- Officers and directors
- Related business entities
Texas example: Texas SOS Business Search
5. Court Records (Free or Low-Cost)
- Search local court websites
- Bankruptcy filings (PACER)
- Civil judgments
- Criminal records (some states)
6. Phone Number Lookup
- Reverse phone lookup (Whitepages, TrueCaller)
- Check if new number is registered
- Find carrier (cell vs landline)
7. "Google the Relative"
- Find debtor's family members (parents, siblings, spouse)
- Search them on social media
- Often debtor is tagged in their photos or posts
- Can sometimes contact (carefully, FDCPA limits apply)
Advanced Skip Tracing Techniques
What Professional Agencies Do
1. Database Scrubbing
- Run name through multiple databases
- Cross-reference addresses, phones, SSNs
- Look for patterns (same address with new name, etc.)
2. Relative & Associate Tracking
- Identify family members and business partners
- Contact them (following FDCPA rules)
- "Do you know how I can reach John Smith?"
- Often relatives know where debtor moved
3. Employment Verification
- Call last known employer
- "Is John Smith still employed here?"
- If yes: now you have garnishment target
- If no: "Do you have forwarding info?"
4. Utility Company Inquiries
- Electric, water, gas companies
- "I'm trying to reach John Smith, do you have service at this address?"
- Often forwarding address on file
5. Post Office Forwarding
- Mail certified letter to last known address
- If undeliverable, request forwarding address from USPS
- $2 fee, often worth it
6. Vehicle Registration Lookup
- If you have license plate or VIN
- DMV records show current registered address
- Requires legal access (or hire investigator)
7. Social Engineering
- Call debtor's business (if still operating)
- Pose as customer/client needing to reach owner
- Receptionist often provides contact info
- Legal gray area (borderline misrepresentation)
Asset Discovery: Finding Hidden Money
How to Identify What Debtors Own
Even if you find the debtor, they may claim "I have no money."
Asset discovery reveals what they actually own (so you can seize it).
What you're looking for:
- Real property (houses, land, commercial buildings)
- Vehicles (cars, trucks, boats)
- Bank accounts
- Business assets (equipment, inventory, receivables)
- Investments (stocks, retirement accounts)
- Personal property (jewelry, art, collectibles)
Asset Discovery Techniques
1. Public Property Records
- County appraisal district websites
- Search by name
- Shows all real property owned in that county
- Assessed value, mortgage amount, equity
Example: Debtor owes $100K. You find they own $500K home with $300K mortgage = $200K equity. You can place lien on property.
2. Vehicle Registration
- DMV records (requires legal access)
- Shows vehicles titled in their name
- Can levy/seize vehicles (with judgment)
3. UCC Lien Search
- Secretary of State website
- Shows secured loans on business assets
- If debtor has business equipment with no lien = you can seize it
4. Business Bank Accounts (Post-Judgment)
- After winning judgment, subpoena bank records
- Identify which banks they use
- File writ of execution to levy account
5. Accounts Receivable
- If debtor has a business, they have customers who owe them money
- You can garnish their receivables (after judgment)
- "Your debtor now pays us, not you"
6. Social Media Clues
- Posts about new car, vacation, luxury purchases
- Shows they have money (despite claiming poverty)
- Evidence of fraudulent transfer (moving assets)
7. Lifestyle Analysis
- Where do they live? (Zillow estimated value)
- What do they drive? (Kelly Blue Book value)
- Where do they vacation? (Instagram posts)
- Where do their kids go to school? (private = expensive)
If lifestyle doesn't match "I'm broke" claim, they're hiding assets.
Case Study: $250,000 Hidden Asset Recovery
The Situation
- Debt: $250,000 owed to supplier
- Debtor: LLC dissolved, owner claimed "business failed, no assets"
- Challenge: No response to collection efforts for 6 months
Skip Tracing Process
Step 1: Owner Search
- Owner (John Doe) closed ABC Services LLC
- Google search: Found new business "XYZ Solutions LLC"
- Secretary of State: John Doe is registered agent
Step 2: Asset Discovery
- Property records: John owns $800K home (no mortgage!)
- UCC search: No liens on new business assets
- Secretary of State: New LLC formed 2 weeks after old LLC dissolved
Step 3: Fraudulent Transfer Investigation
- Old LLC's assets (equipment, client list) transferred to new LLC
- Transfer happened AFTER debt was incurred (fraudulent transfer)
- John used new LLC to "leave debt behind"
Step 4: Legal Action
- Filed lawsuit against old LLC AND John Doe personally
- Alleged fraudulent transfer of assets
- Obtained judgment: $250,000 + $50,000 attorney fees
Step 5: Asset Seizure
- Placed lien on John's $800K home
- Levied business bank account ($45,000 seized)
- Garnished new LLC's receivables ($180,000 collected over 12 months)
- Threatened foreclosure on home lien
Result: $250,000 recovered in full + $50,000 attorney fees
Key lesson: "Disappeared" debtor didn't actually disappear. He just created new business and moved assets. Skip tracing + asset discovery + fraudulent transfer claim = full recovery.
Legal Limits on Skip Tracing
What You Can (and Can't) Do
✅ Legal:
- Search public records (property, court, business filings)
- Google search, social media search
- Reverse phone lookup
- Contact relatives/associates (following FDCPA rules)
- Hire licensed private investigator
- Use skip tracing databases (TLO, LexisNexis, etc.)
❌ Illegal:
- Pretexting (lying about who you are to obtain info)
- Accessing credit reports without permissible purpose (FCRA violation)
- Hacking email/social media accounts
- GPS tracking without consent (stalking)
- Obtaining bank records without subpoena
- Wiretapping or recording without consent (in two-party states)
- Bribing government employees for records
FDCPA Limits on Contacting Third Parties:
- You CAN contact relatives/associates to locate debtor
- You CANNOT disclose the debt
- You CANNOT contact them repeatedly (harassment)
- You CANNOT contact them after debtor hires attorney
Example of legal contact:
"Hi, I'm trying to reach John Smith. Do you have current contact information for him?"
Example of illegal contact:
"John Smith owes us $50,000 and we need to find him. Where is he?"
When to Hire a Professional Skip Tracer
DIY vs. Professional
Try DIY skip tracing if:
- Debt is <$10,000 (not worth professional fees)
- You have time to search free resources
- Debtor is likely findable (not a true vanish)
Hire a professional if:
- Debt is $10,000+ (worth the investment)
- Debtor is intentionally hiding (strategic skip)
- You've exhausted free resources
- You need legal/subpoena power (post-judgment asset discovery)
- Time is critical (statute of limitations)
Cost:
- Skip tracing service: $50-$300 per search
- Private investigator: $75-$150/hour
- Collection agency with skip tracing: Included in contingency fee
Tools for DIY Skip Tracing
Free Resources
- Google (obviously)
- Facebook (search by name, location, employer)
- LinkedIn (current employer, business connections)
- County property records (appraisal district websites)
- Secretary of State (business filings)
- PACER (federal court records, $0.10/page)
- Whitepages (reverse phone lookup)
- TrueCaller (identify unknown numbers)
Paid Tools (Worth It)
- Spokeo ($19.95/month) - Basic people search
- BeenVerified ($26.89/month) - More comprehensive
- Intelius ($24.95/month) - Background checks
- TLO ($50-$200/month) - Professional-grade (requires business)
Professional Tools (Agency-Level)
- LexisNexis Accurint ($100-$300/month)
- Clear ($150-$400/month)
- IRBsearch ($200+/month)
Skip Tracing Ethics & Best Practices
Do It Right
DO:
- Use information only for legitimate debt collection
- Respect privacy (don't share personal info)
- Follow FDCPA rules (no harassment, no third-party disclosure)
- Document your search process
- Stop if debtor hires attorney
DON'T:
- Stalk or harass debtor or family
- Disclose debt to third parties
- Use illegal methods (hacking, pretexting)
- Contact debtor at work after being asked not to
- Threaten or intimidate
Remember: The goal is to locate and collect, not to ruin someone's life.
Common Skip Tracing Mistakes
What NOT to Do
Mistake #1: Giving Up Too Soon
- Most debtors are findable within 30-60 minutes of searching
- Try multiple databases and methods
Mistake #2: Illegal Methods
- Don't hack, don't pretext, don't stalk
- Legal liability isn't worth it
Mistake #3: Contacting Debtor at Work
- FDCPA prohibits contact at work after being asked to stop
- Can result in lawsuit against you
Mistake #4: Disclosing Debt to Third Parties
- "John Smith owes us money, where is he?" = FDCPA violation
- Just ask: "Do you have contact info for John Smith?"
Mistake #5: Not Documenting
- Keep records of every search, every contact attempt
- Useful for court if you sue for fraudulent transfer
The Bottom Line
If you can't find the debtor, you can't collect the debt.
Skip tracing is the critical first step in recovering from "disappeared" debtors. Professional agencies have access to databases and techniques that make finding people much faster.
When to DIY:
- Small debts (<$5,000)
- You have time
- Debtor is likely findable (accidental skip)
When to hire professionals:
- Large debts ($10,000+)
- Strategic or dissolved business skip
- You've hit a wall with free resources
- Post-judgment asset discovery needed
Alexander Strauss & Associates: Expert Skip Tracing
What we do:
- Professional skip tracing databases (TLO, LexisNexis, Clear)
- Asset discovery investigations
- Fraudulent transfer identification
- Post-judgment asset seizure
- 25+ years of experience finding "disappeared" debtors
Our success rate: 80% of skip traces result in debtor location within 7 days
No obligation. No upfront cost. We only get paid when you get paid.
FAQs: Skip Tracing
Q: Is skip tracing legal? A: Yes, as long as you use legal methods (public records, databases, social media). Illegal methods (hacking, pretexting) are not.
Q: How long does skip tracing take? A: 10 minutes to 2 weeks, depending on how well the debtor is hiding.
Q: Can I hire a private investigator? A: Yes. PIs have access to databases and techniques most people don't.
Q: What if I can't find them? A: Some debtors are genuinely unfindable (rare). May need to write off debt.
Q: Can I track their phone with GPS? A: No, that's illegal stalking. Don't do it.
Q: What if they're in another state? A: Skip tracing works nationwide. If you get a judgment, you can domesticate it in the new state.
Can't find your debtor? Let us locate them for you →
General information for commercial creditors, not legal advice. Laws and deadlines change and depend on the facts — confirm specifics with qualified counsel.