Bad Debt
/ˌbæd ˈdɛt/
Definitions
- (n.) A debt that is not collectible, usually because the debtor is insolvent or the debt is otherwise unpayable, often written off as a loss by the creditor.
The company recorded a bad debt expense after determining the client would not repay the loan.
Forms
- bad debt
- bad debts
Related terms
See also
Commentary
Commonly used in accounting and insolvency contexts to denote debts unlikely to be recovered; precise treatment varies by jurisdiction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.