Non-collectable

A "non-collectable" item or debt is one that is unlikely or impossible to recover or obtain payment for. This designation typically applies to financial obligations, such as loans or overdue accounts, where the debtor has insufficient assets, cannot be located, or has declared bankruptcy. Furthermore, non-collectable can also describe items of artistic or cultural value where it is unlikely it will be collected, exhibited or preserved due to lack of funds or destruction of value. Determining non-collectability often involves legal and financial assessments to estimate the probability of recovery.

Non-collectable meaning with examples

• The bank wrote off the credit card debt as non-collectable after the borrower declared bankruptcy and had no assets. Despite extensive efforts, the collection agency deemed the account non-collectable, as the debtor had moved out of state and had no known address. The financial advisor advised the client to consider some of his debts non-collectable, suggesting he focuses on those with a higher probability of recovery.
• After numerous attempts to retrieve the balance, the loan was considered non-collectable, resulting in a loss for the lending institution. The company classified a significant portion of its overdue invoices as non-collectable after realizing the clients were unable to pay. Due to the age and condition of the account, the insurance provider marked the claim as non-collectable.
• With the decline of the client's business, the outstanding balance, the agency knew was now non-collectable. The value in question was from their past partnership, and the business no longer had a positive outlook. Due to the clients being unable to pay, they marked a large balance as non-collectable.
• The art gallery concluded that the damaged sculptures, due to their condition and lack of restoration funding, were non-collectable for public display. Without preservation efforts, the decaying artifacts from the site were considered non-collectable in their current condition. The historical documents, ravaged by water damage, were sadly declared non-collectable and unusable for archival purposes.