Bad Debt Recovery

What is Bad Debt?

Bad Debt is an Accounts receivable or invoice that is implausible to be paid and is treated as a loss. In other words, bad debt is a debt which is not collectible, thus creditor has written it as a loss in the balance sheet. Sometimes it might occur when the process of collecting the debt costs more to the creditor than the actual amount of the debt.

What is Debt Recovery?

Debt recovery is the process of making people or companies pay the money that they owe to other people or companies. It is a creditor’s attempt to recover consumer credit and loans that have not been paid back and become the debt at the time that was arranged and continues to go unpaid. At this time a professional debt recovery services agency is an effective way to get money.

What is Bad Debt Recovery?

It is a process of collecting debt after it has been written off or classified as a bad debt. Bad Debt Recovery can produce income because it will typically generate a loss when it is written off by the lender.