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.
Global Banking News-16 July 2009-Bank of America says charge offs on credit cards have increased(C)2009 ENPublishing - http://www.