bad debt

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bad debt

n. an uncollectible debt. The problem is to determine when a debt is realistically dead, which means there must be some evidence of uncollectibility or a lengthy passage of time. Discharge in bankruptcy, the running of the statute of limitations to bring a lawsuit, disappearance of the debtor, a pattern of avoiding debts or the destruction of the collateral security can all make a debt "bad." For income tax deduction purposes such a debt in business is deductible against ordinary income (found in Schedule C) and such a personal debt is deductible against short-term capital gains. A debt due for services rendered is not a bad debt for tax purposes, since there is just no income on which to be taxed.

bad debt

noun dishonored bill, inconvertible bill, irreeeemable bill, irretrievable debt, loss, outstanding debt, protested bill, uncollectible debt, write-off
Associated concepts: bad debt loss, bad debt tax deduction
See also: nonpayment
References in periodicals archive ?
0 million of non-cash adjustments to provision for uncollectibles
uncollectibles that were taken concurrently with the
Events that could favorably impact DTE's credit ratings and return the Outlook to Stable include the company's ability to reduce parent level debt obligations through asset monetizations or proceeds from equity issuances, withstand the current economic climate through effective and sustainable cost controls, which would maintain credit metrics at or near current levels, and a constructive outcome in DECo's pending electric rate case filing, including an uncollectibles recovery mechanism.
Third, savings in uncollectibles will be achieved as delinquencies decrease and more customers take advantage of the incentives," Franck continued.
Over 120 of TRMA members will be in attendance to learn about topics such as benchmarking, best practices and credit management solutions to reduce fraud and uncollectibles.