charge off
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Charge off
See: Bad debt
Write-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.