Debt becomes bad debt when the creditor has made all reasonable efforts to collect but has been unfortunately unable to do so. Many times, creditors will send debt collection letters or attempt business debt recovery in a multitude of different ways. However, debt recovery solutions are often required to help recoup bad debts.
Unfortunately, pretty much every business has to deal with bad debt, uncollectable debts, and non-payment by customers. Fortunately, there are companies who know how to recover bad debts, and can help by offering debt settlement advice or debt recovery solutions.
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. Interestingly, in the case of a debtor’s bankruptcy, it is impossible to send correspondence to the business regarding their debt.
If an account is fairly large and remains unpaid for an extended period, like half a year or so, and you’re doubtful about ever collecting on the debt, consider offering in writing a time-limited, deep discount to resolve the matter. Of course, it is also wise to trust professional debt recovery services, as they can be a big help when you need to recover bad debts. Great references here.