bad debt


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Related to bad debt: Bad Debt Expense, Bad Debt Recovery

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 ?
When bad debt write-offs are classified accurately, a bad debt benchmark of 10 percent to 12 percent is considered average or good for most pathology practices.
Royal Surrey County Hospital recorded PS172.745 in other bad debt, which included PS159,241 owed by Virgin Care Services Ltd, which started High Court Proceedings against NHS England, Surrey County Council and the CCGS after losing out on a contract to provide services in Surrey.
Business bad debt for loan to supplier: S, a sole proprietor, operates a retail store.
In Massachusetts, the Uncompensated Care Pool (UCP) partially reimbursed hospitals for charity care and emergency room bad debt provided to uninsured low-income patients.
As a result of the bad debt provision HiSoft has adjusted its full-year outlook for non-GAAP diluted earnings per ADS to an estimated range of USD0.67 to USD0.68, from the previously estimated range of USD0.82 to USD0.83.
IFC, the World Bank's private sector arm, is looking for assuming bad debt in Russia for the first time.
Collection agencies that have been approved are then listed on CollectionTree.com and added to the internal analysis software that automatically matches clients' bad debt with collection agencies.
THE part-nationalised Lloyds Banking Group today confirmed it returned to profit in the first three months of the year after a marked slowdown in bad debts.
Lloyds racked up pounds 24bn in bad debts during 2009 - mainly due to the toxic debts in theHBOSloan book - which led to a pounds 6.3bn loss last year.
Severn Trent said it had "worked hard" to hold bad debt levels at 2.3 per cent of turnover and said it was on track to deliver an extra pounds 5 million of cost savings for the year.
THE scale of bad debt among Cardiff businesses has been revealed in a study by premier Invoice and Asset Based Lender (ABL), Venture Finance.
Currently, it is typical for management companies to make arbitrary adjustments of resident approval guidelines for the sake of occupancy without knowing what to expect in additional bad debt. Now the industry is seeing a seesaw effect, first from lowering resident approval standards and then sudden reversal to offset the surge in increased bad debt.