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Eliminate or write off.

The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless.

A classic case is the bad debt, which is an uncollectible debt. A bad debt is a permissible business tax deduction, and a non-business bad debt may also be claimed as a charge-off in the year the debt becomes entirely worthless. Charge-off is generally used in reference to a charge or debt that is not paid when due.

References in periodicals archive ?
Now that we've drawn the big picture, let's take a closer look at the composition of net charge-offs across different business lines to see which, if any, loan type is driving the overall trend.
The equipment leasing and finance service provider has become more active in the Equipment Leasing and Finance Association, and Boehm said his company has been streamlining the process to make selling charge-offs easier for its customers.
banks will incur a total of $744 billion in loan charge-offs between 2008 and 2011, according to a press release.
A deemed charge-off allows a taxpayer to take a new charge-off for preexisting worthlessness that economically was not restored when the terms of the debt instrument were subsequently modified.
These banks had a lower proportion of nonperforming assets, lower charge-off rates, and a smaller concentration of commercial real estate loans than did banks in the nation as a whole.
While loan growth remained positive in first quarter 2008, the high rate of charge-offs and provisions, swelling of nonperforming assets, attempts by banks to preserve capital and depressed economic factors raise the possibility of negative overall aggregated loan growth in the future.
TBF pioneered the service of buying charge-offs in the equipment leasing and finance industry when the company was founded in 1998.
Even though it was not a material improvement, we view the improvement in the lagged charge-offs as a modest positive in light of coincident charge-off rates.
Detailed data on charge-offs net of recoveries by type of loan are available for banks with assets of more than $300 million or with foreign offices (table 5).
In the Prime Index, there was mild excess spread compression as charge-offs continued to creep upwards by 0.
Since its inception in 1998, TBF has purchased hundreds of millions in charge-offs.
So while charge-offs have played a major role in lower credit card debt levels, it was not the only factor.