Charged-off Debt
Charged-off debt is a loan or receivable a creditor has written off for accounting purposes while collection rights may still remain.
Financial Distress and Charged-Off Debt terms for debt instruments, covenants, ratios, credit derivatives, restructuring, collections, servicing, and recovery.
Financial Distress and Charged-Off Debt terms explain debt instruments, borrower-creditor obligations, market issuance, covenants, ratios, credit protection, servicing, distress, restructuring, and recovery.
Use this branch when a debt instrument, covenant, ratio, issuance structure, legal process, credit derivative, servicing duty, or restructuring changes credit analysis.
| Term | Use it for |
|---|---|
| Charged-off Debt | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Distressed Debt | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Financial Distress | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Means Test | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Zombie Companies | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
Check the debt document, obligor, principal amount, maturity, coupon or rate, covenant language, seniority, collateral, market price, servicing status, legal process, and restructuring terms.
Debt-market and restructuring outcomes depend on contracts, law, issuer facts, and market conditions; this page is educational.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Charged-off debt is a loan or receivable a creditor has written off for accounting purposes while collection rights may still remain.
Distressed debt is debt of a borrower facing default, restructuring, bankruptcy, or severe market concern about repayment.
Financial distress occurs when a borrower struggles to meet obligations, raising the risk of default, restructuring, or insolvency.
A means test compares debtor income and expenses to statutory thresholds to determine bankruptcy eligibility or repayment capacity.
Zombie companies generate enough cash to keep operating but not enough to materially reduce debt or fund healthy growth.