Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
Division of

The Mortgage Group®


GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Bad Debt


Synonyms:loss, noncollectable, unrecoverable
Filed Under: financial-banking, mortgages, taxation
Tags: banking, bankruptcy, debt, mortgage, taxes
 

Definition of bad debt

bad debt
1. Money you can't collect. Businesses are allowed to deduct bad debts under certain circumstances. If a bad debt is personal, it may be deducted in some cases as a short-term capital loss. Loans between family members generally are classified as non-business.

Related Terms and Acronyms:

  • business bankruptcy   A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
  • collection   The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.
  • credit rating (CR)   A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
      ➥  A metric to measure the credit worthiness of a debtor.
  • credit report (CR)   A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
      ➥  A report that outlines the credit worthiness of an individual or entity.
  • debt   Money one person or firm owes to another person or firm.
  • debt consolidation   The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • non-dischargeable debt   Debt that cannot be eliminated in bankruptcy such as Federal taxes.

Search the Glossary

Not All Brokers Offer Great Rates
The majority of brokers in Canada limit themselves to using a small network of lenders. We however, have access to dozens of lenders and the lowest mortgage rates in Canada.
Mortgage Rates
 
Compare Term Rates Using Our New Mortgage Calculator
The length of your mortgage term is often correlated with your interest rate. By and large, longer terms have higher rates and shorter terms have lower rates. With our mortgage calculator you can try out different mortgage terms and rates in order to see how they will affect the amount of interest you will end up paying in the long term.
New Mortgage Calculator with Rate Comparison
 
Apply Online and Secure the Best Rate
Apply for a free mortgage quote today and see what one of Canada's earliest established online mortgage brokerages can do for you. Secure the lowest rates available for up to 120 days from the date of your pre-approval!
Apply Online for Best Rate