188.8.131.52 Legally irrecoverable debts
This topic provides information about the circumstances in which a debt (1.1.D.60) may not be recoverable at law. A debt that is not recoverable at law may be written-off.
Legally irrecoverable debt
An FA debt is irrecoverable at law if:
- the debt is unlikely to be recovered as a result of legal proceedings, or
- the debtor is discharged from bankruptcy, and the debt was incurred before the discharge but not as a result of fraud, or
- a debtor has died leaving no estate or there are insufficient funds in the debtor's estate to repay the debt.