- Money you can't collect. Businesses are allowed to deduct bad debts under certain circumstances. If a bad debt is personal, it may be deducted in some cases as a short-term capital loss. Loans between family members generally are classified as non-business.
loss, unrecoverable, noncollectable
Related Terms and Acronyms
- Business Bankruptcy — Definition,
- A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
- Collection — Definition,
- The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.
- Credit Rating (CR) — Acronym, Very Important,
➥ A metric to measure the credit worthiness of a debtor.
- A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
- Credit Report (CR) — Acronym, Very Important,
➥ A report that outlines the credit worthiness of an individual or entity.
- A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
- Debt — Definition,
- Money one person or firm owes to another person or firm.
- Debt Consolidation — Definition,
- The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
- Non-dischargeable Debt — Definition,
- Debt that cannot be eliminated in bankruptcy such as Federal taxes.