Bad debt is usually a product of the debtor going into bankruptcy or where the additional cost of pursuing the debt is more than the amount the creditor could collect.
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So you have bad credit… It happens. A lot… and to a lot of people these days… Whether due to irresponsible choices, family emergencies, or a variety of other human reasons, this is a fact of life living in today’s world. People simply can rack up debt and fall into a situation where they can’t pay it back at that point in time.
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