BAD DEBT

1. a debt that is not collectible (and is therefore worthless – to the creditor);

2. a debt that becomes uncollectible because the debtor is insolvent.

A nonbusiness bad debt is deductible from gross income as a short-term capital loss (whereas a business bad debt is allowable as a deduction against ordinary income)

see income; capital gains or losses; insolvency; bankruptcy

Congratulations! You're now Froogled Up™ on what "Bad Debt" means!

Feel free to use it throughout your financial/insurance life.

Sincerely,

www.FroogleMe.com

"Actuary"

user comments

thank you, come again!
Froogle 1.1.1.7

BAD DEBT

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