write off the debt

Meaning

This expression means to officially accept that a debt cannot be recovered and to record it as a loss in accounting. It is commonly used by banks, businesses, and governments when a borrower is unable to pay back what they owe. The tone is neutral and professional, reflecting standard financial and accounting practices.

Examples

• After the startup went bankrupt, the bank had no choice but to write off the debt.

  After the startup went bankrupt, the bank had no choice but to write off the debt.

• The government decided to write off the debt of several developing nations to encourage economic growth.

  The government decided to write off the debt of several developing nations to encourage economic growth.

• It is sometimes more cost-effective to write off the debt than to pursue legal action against a customer.

  It is sometimes more cost-effective to write off the debt than to pursue legal action against a customer.

• Our accounting department will write off the debt as a bad loan at the end of this fiscal quarter.

  Our accounting department will write off the debt as a bad loan at the end of this fiscal quarter.

• We cannot simply write off the debt without trying to negotiate a settlement first.

  We cannot simply write off the debt without trying to negotiate a settlement first.

Common Mistakes

• ✗ The bank decided to write out the debt.

  ✓ The bank decided to write off the debt.

  'Write out' means to write something in full detail. The correct financial phrasal verb for canceling an unrecoverable debt is 'write off'.

• ✗ They will write off the debt from their books.

  ✓ They will write off the debt on their books.

  While 'off' is part of the phrasal verb, we do not say 'write off from'. We write off a debt, or write it off against profits.

Related Expressions

Practice

• The company realized the customer would never pay, so they had to ___.

  💡 Accept the loss officially on the balance sheet.

  Show answer

  write off the debt

• Is it better to hire a collection agency or just ___?

  💡 Cancel the outstanding balance as uncollectible.

  Show answer

  write off the debt