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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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
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.
* Throughout the credit crunch and recession and into 2012, commercial and multifamily mortgages had the lowest charge-off rates of any type of loan held by commercial banks and thrifts.
Conformity: If the insurance company elects to apply the IDD, it must apply it to the SSAP 43R credit-related impairment charge-offs of all eligible debt that is partially worthless.
-- Moody's estimates that rated US banks will incur $744 billion of loan charge-offs between 2008 and 2011.
Net charge-offs have decreased 27 percent since the first quarter of 2012 although they are not yet at pre-crisis levels.
In this, Svehla said she puts more value on data about delinquency than data about charge-offs, since charge-offs are so often a lagging indicator.
The latest report found bank loan charge-offs had decreased on an aggregate basis for five straight quarters, reaching 2.6 percent of loans in the fourth quarter.
Citibank, a unit of Citigroup, Inc (NYSE: C), has announced that its credit card charge-offs have dropped.
QA I am starting the process of clearing a couple of charge-offs from my credit report, and I have drafted a letter I would like to send to my creditors stating that I will pay them a lump sum if they remove the negative listing.
NEW YORK-Target Corp.'s credit business experienced increased charge-offs in March as well as higher delinquencies.
For the banking system as a whole, net charge-offs rose to 1.55 percent of outstanding loans, from 1.40 percent in 1990 and 1.11 percent in 1989.
Provision for loan losses of $787M increased $45 million from the prior year as higher net charge-offs were partially offset by a lower reserve build.