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A debt, including credit card debt, has become "uncollectible" when there is no reasonable likelihood that the person who owes the money will be able to pay it. For instance, if you owe $1000 on your credit card, and then suddenly die, leaving behind nothing (no house, no bank account, etc.), the $1000 becomes uncollectible in that there's no reasonable likelihood that the credit card company will ever be paid. Another example would be if you owed money, and then were arrested for a major crime which put you into prison for the rest of your life. There's no likelihood that the credit card company would ever be paid. In such instances the credit card company has to "write off the amount", meaning that they put it on a list of amounts they never expect to receive. On a personal level, it would be like if you loaned an acquaintance $500, and then found that the person suddenly moved out of the country, leaving no forwarding address. You can basically kiss the money goodbye as it's very unlikely that you'll ever be repaid.

by DON W

2 weeks ago

Asker's Rating: 

Sears, Roebuck and Co. now has legal woes because of its credit woes. The Hoffman Estates-based retailer is being sued for damages stemming from a loss of shareholder value caused by alleged malfeasance by management led by CEO Alan Lacy. The two shareholder lawsuits, which seek class-action status in U.S. District Court in Chicago, allege that Sears and its executives made "false and misleading" statements about its financial outlook. The lawsuits allege Sears failed to tell investors that its reserves for uncollectible credit-card debts were short by "at the very least hundreds of millions of dollars," and that its earnings

by Ciara- 2 weeks ago