What does bad debt mean?

Looking for the meaning or definition of the word bad debt? Here's what it means.

Noun (business, accounting) A debt which cannot be recovered from the debtor, either because the debtor lacks the money to pay or because the debtor cannot be found and/or forced to pay. Find more words! 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The recovery of any bad debt claimed as a capital loss will be treated as a capital gain in the year of recovery. Under Government supervision, banks will set guidelines to deal with financially crippled borrowers and get rid of their bad debt. Credit unions are more open to serious bad debt problems than other financial institutions. That's one reason the industry is stepping up efforts to manage the bad debt. It will also manage overall credit exposure in an integrated manner to reduce the rate of bad debt. See Also What is another word for bad debt? What is the opposite of bad debt? Sentences with the word bad debt Words that rhyme with bad debt What is the plural of bad debt? Nearby Definitions Baddams bad company bad checks bad check bad cess bad breath bad debts badded baddeleyite baddeleyites badder badderlocks