Economists and political pundits can continue to debate whether the United States is headed toward a recession, but there are some telltale signs that there may be tougher times ahead for contractors trying to collect payments.  

“Bankruptcies (Chapter 11) are up 71 percent from the beginning of the year, and bankruptcies overall are up 15 percent, which means there’s a lot less money on the streets,” said Credit Overlord Thea Dudley in a recent videochat with Group Publisher Jill Bloom.  

Residential contractors may feel the pinch first, as foreclosures are also up double digits in 2023. Dudley said getting work documented, inquiring about credit reports, and ensuring there are signatures on change orders are essential.