Bad Debt Recovery


Bad Debt Recovery
A debt from a loan, credit line or accounts receivable that is recovered either in whole or in part after it has been written off or classified as a bad debt. Because it generally generates a loss when it is written off, a bad debt recovery usually produces income.

In accounting, the bad debt recovery would credit the "allowance for bad debts" or "bad debt reserve" categories, and reduce the "accounts receivable" category in the books.

Not all bad debt recoveries are "like-kind" recoveries. For example, a collateralized loan that has been written off may be partially recovered through sale of the collateral. Or, a bank may receive equity in exchange for writing off a loan, which could later result in recovery of the loan and, perhaps, some additional profit.


Investment dictionary. . 2012.

Look at other dictionaries:

  • bad debt recovery — ➔ recovery * * * bad debt recovery UK US noun ► [U] FINANCE, LAW the legal process of forcing someone to pay a debt: »The government established a financial loan court to facilitate bad debt recovery. »a bad debt recovery agency ► [C or U]… …   Financial and business terms

  • bad debt recovery — successful recovery which was written off as lost …   English contemporary dictionary

  • bad debt — An uncollectible debt. A debt which may be deducted from gross income in determining income subject to tax. Anno: 39 ALR2d 898. A debt which is worthless because, in the exercise of sound business judgment, there is no likelihood of recovery… …   Ballentine's law dictionary

  • recovery — Rising prices following a decline. The CENTER ONLINE Futures Glossary The use of depreciation of assets to offset costs; or a new period of rising securities prices after a period of declining security values. Bloomberg Financial Dictionary * * * …   Financial and business terms

  • debt — n [Old French dette, ultimately from Latin debita, plural of debitum debt, from neuter of debitus, past participle of debere to owe] 1: something owed: as a: a specific sum of money or a performance due another esp. by agreement (as a loan… …   Law dictionary

  • Debt crisis — The debt crisis is the general term for the proliferation of massive state debts relative to tax revenues, especially in reference to Latin American during the 1980s, and the United States and the European Union since the mid 2000s.[1][2][3][4]… …   Wikipedia

  • Bad Check Restitution Program — A Bad Check Restitution Program is an intermediate agency that works to retrieve funds from bad check writers in order to repay moneys owed to the recipients of the checks.About half of all U.S. states offer some type of Bad Check Restitution… …   Wikipedia

  • capital recovery — Collection of charged off bad debt previously written off against the allowance for doubtful accounts …   Black's law dictionary

  • capital recovery — Collection of charged off bad debt previously written off against the allowance for doubtful accounts …   Black's law dictionary

  • American Recovery and Reinvestment Act of 2009 — Stimulus bill redirects here. For other uses, see Stimulus bill (disambiguation). ARRA redirects here. For other uses, see ARRA (disambiguation). American Recovery and Reinvestment Act of 2009 Full title An act making supplemental appropriations… …   Wikipedia


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