charge off

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Charge off


A reduction in an individual's or a company's income as the result of an expense. For example, an unpayable credit sale may be a write-off for the creditor, especially if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of income for the creditor. A write-off may usually be deducted from one's taxable income.

charge off

See write off.

charge off

To discontinue accounting for some or all of a promissory note and its accrued interest as an asset of the lender.If a loan is partially or totally uncollectible,then it is partially or totally worthless and cannot constitute an asset.This is an accounting function only; the lender may still pursue collection activities and then rebook the money as a cash asset when and if there is a recovery.

References in periodicals archive ?
Capital One Financial Corp (NYSE: COF) has said in a regulatory filing that its annualized net charge offs have dropped.
Net charge offs during the third quarter of 2009 were primarily related to valuation adjustments on several large residential construction loans.
Global Banking News-16 July 2009-Bank of America says charge offs on credit cards have increased(C)2009 ENPublishing - http://www.