bad debt
Money never returned
Bad debt is money owed that will likely never be collected—a loan that won't be repaid, an invoice that won't be paid.
Businesses write off bad debts as losses when debtors default, go bankrupt, or simply disappear: The company's earnings were dragged down by bad debt from failed loans.
In accounting, a bad debt expense reflects the cost of extending credit to customers who don't pay.
Recorded value reduction
- charge-offDeclaring debt uncollectible
- uncollectibleImpossible to claim payment
- provisionPreparatory supply or clause
- impairmentDiminished function or capacity
receivables · nonperforming · doubtful · balance sheet · income statement · accrual · bookkeeping · audit
Failure to settle debts
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- overduePast expected arrival
- defaulterOne who fails obligations
past due · skip · debtor · collection agency · collections · creditor · judgment · lien
Legal status when insolvent
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
- administrationOrganizational oversight and control
- restructuringRearranging an existing framework
insolvent · reorganization · trustee · liquidator · distressed · moratorium · petition · discharge
One who gathers items
- skip tracingLocating absconded individuals
- negotiationDiscussion seeking mutual accord
- settlement offerTerms to resolve a claim
- repaymentGiving back what's owed
installment · compromise · factoring · statute of limitations · harassment · third party · agency · pursuit
Ability to repay debts
- credit scoreNumerical measure of borrower reliability
- risk assessmentEvaluating likelihood of harm
- credit checkExamination of payment history
- credit historyRecord of past borrowing
lending · borrower · unsecured loan · subprime · exposure · underwriting · credit policy · risk management
write-off
Recorded value reduction
- charge-offDeclaring debt uncollectible
- uncollectibleImpossible to claim payment
- provisionPreparatory supply or clause
impairment · receivables · nonperforming · doubtful · balance sheet · income statement · accrual · bookkeeping · audit · reserve
nonpayment
Failure to settle debts
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- overduePast expected arrival
defaulter · past due · skip · debtor · collection agency · collections · creditor · judgment · lien · default notice
bankruptcy
Legal status when insolvent
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
- administrationOrganizational oversight and control
restructuring · insolvent · reorganization · trustee · liquidator · distressed · moratorium · petition · discharge · winding up
collector
One who gathers items
- skip tracingLocating absconded individuals
- negotiationDiscussion seeking mutual accord
- settlement offerTerms to resolve a claim
repayment · installment · compromise · factoring · statute of limitations · harassment · third party · agency · pursuit · recoupment
creditworthiness
Ability to repay debts
- credit scoreNumerical measure of borrower reliability
- risk assessmentEvaluating likelihood of harm
- credit checkExamination of payment history
credit history · lending · borrower · unsecured loan · subprime · exposure · underwriting · credit policy · risk management · loan-to-value
- financial riskscredit risk, insolvency, market crash, volatility, write-off
- credit riskcredit score, credit rating, creditworthiness, loan default, credit analysis
- debtcreditor, owe, debtor, lender, unpaid
- financial ruinbankrupt, bankruptcy, bust, busted, broke
- money troublesbankruptcy filing, paycheck to paycheck, struggling, financial ruin, strapped
- credit risksdefault, bankruptcy, late payments, foreclosure, charge-off