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Bad-debt recovery definition

Question
What is the definition of "bad-debt recovery"? 
Answer
Bad debt recovery, or credit collection, is the process of attempting to derive some value from accounts receivable that have been previously written off. This is generally accomplished by selling, at a substantial discount, a portfolio of debt to collection agencies who then work to recover that debt.

The debt collection industry is highly regulated to protect the rights of the debtor. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
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