Can a business write off charged off bankruptcy accounts?

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Can a business write off charged off bankruptcy accounts?
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2008 Taxes -

Can a business write off losses as a result of bankruptcy charge off accounts receivable?
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Assume: I am the business owner and I have several accounts receivable (borrower/clients) that file bankruptcy - the Trustee/Court has deemed my loan to the client "Discharged" or uncollectable.

It is a loss in the real world, we understand the borrower will no longer be impacted financially; however what is my reprieve?

Mutt

It's a loss for them, so yes they can.

*EDIT* - Are you talking about if someone has an account and files bankruptcy, or if the company files bankruptcy?

*EDIT2* - It is a loss to the business that they will not regain. They can write off the loss in their taxes, but that will not recoup the entire loss. This is why credit card companies have such high interest rate if you don't have very good credit. The lower your credit score, the higher risk you are to file bankruptcy.

Tomb Raider Fanatic

When a business files chapter 11, the lawyer will explain what you can write off and what you get to keep.

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