bad debts
Money never recovered
Bad debts are amounts owed to a business or person that cannot be collected—the debtor has defaulted, gone bankrupt, or otherwise failed to pay.
In accounting, bad debts are written off as losses: The company's bad debts totaled half a million dollars last quarter.
The term implies not just late payment but permanent uncollectibility.
Recorded value reduction
- charge-offDeclaring debt uncollectible
- provisionPreparatory supply or clause
- allowanceFixed periodic payment
- impairmentDiminished function or capacity
write-down · balance sheet · receivables · ledger · reconciliation · adjustment · accruals · financial statements
Failure to settle debts
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- overduePast expected arrival
- defaulterOne who fails obligations
uncollectible · unrecoverable · nonperforming · unpaid · outstanding · delinquent · deadbeat · late payment
Legal status when insolvent
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
- administrationOrganizational oversight and control
- insolventUnable to pay debts
debtor · creditor · trustee · liquidator · assets · liabilities · distressed · dissolution
Gathered set of items
- enforcementCompelling compliance with rules
- workoutStructured physical exercise
- restructuringRearranging an existing framework
- repossessionCreditor seizing collateral
foreclosure · settlement · negotiation · skip tracing · garnishment · repayment plan · litigation · judgment
State of being unprotected
- probabilityQuantified chance of occurrence
- contingencyUncertain possible event
- creditworthinessAbility to repay debts
- credit scoringAssessing borrower reliability numerically
assessment · mitigation · diversification · concentration · counterparty · portfolio · provisioning
write-off
Recorded value reduction
- charge-offDeclaring debt uncollectible
- provisionPreparatory supply or clause
- allowanceFixed periodic payment
impairment · write-down · balance sheet · receivables · ledger · reconciliation · adjustment · accruals · financial statements · bookkeeping
nonpayment
Failure to settle debts
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- overduePast expected arrival
defaulter · uncollectible · unrecoverable · nonperforming · unpaid · outstanding · delinquent · deadbeat · late payment · credit risk
bankruptcy
Legal status when insolvent
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
- administrationOrganizational oversight and control
insolvent · debtor · creditor · trustee · liquidator · assets · liabilities · distressed · dissolution · collapse
collection
Gathered set of items
- enforcementCompelling compliance with rules
- workoutStructured physical exercise
- restructuringRearranging an existing framework
repossession · foreclosure · settlement · negotiation · skip tracing · garnishment · repayment plan · litigation · judgment · seizure
exposure
State of being unprotected
- probabilityQuantified chance of occurrence
- contingencyUncertain possible event
- creditworthinessAbility to repay debts
credit scoring · assessment · mitigation · diversification · concentration · counterparty · portfolio · provisioning
- debt lawcreditor, debtor, creditors, debtors, payment defaults
- business expensespayroll, office rent, salaries, wages, office supplies
- sales accountinggross sales, net sales, sales tax, accounts receivable, receivables