- Collecting bad debts is often a difficult affair .
- Mr. buchhurst, the chief accountant, has decided to chase up some bad debts .
- Bad account dead account uncollectible account bad debt bad loan
- He included some bad debts among his assets
- Chinese banks are plagued by bad debts and inefficiency
- a debt that is unlikely to be repaid
A bad debt is an amount owed to a business or individual that is written off by the creditor as a loss (and classified as an expense) because the debt cannot be collected and all reasonable efforts to collect it have been exhausted. This usually occurs when the debtor has declared bankruptcy or the cost of pursuing further action in an attempt to collect the debt exceeds the debt itself.