What does W/O mean in MILITARY

W/O stands for Written Off. It is a term used to describe debts that have been written off from accounting records due to the amount considered irrecoverable.

A debt can be written off by the creditor when they believe that it is unlikely or impossible to collect payment on the debt. This usually happens when the debtor has become bankrupt, declared insolvent, or passed away, and there are no means of recovering payment.

When a debt is written off, it is removed from an entity's balance sheet and profit & loss statement. In other words, it is recognized as an expense with no associated payments coming in return. This can have a negative effect on an organization's financial position and credit rating but may be preferable to continuous efforts of attempting to collect on the debt.

A creditor might choose to write-off a debt because they believe that pursuing further collection efforts would not result in any payments being made back. In such cases, writing-off the debt is often seen as more cost-effective than taking legal action against the debtor or carrying out extensive collection activities.

Writing-off a debt may provide creditors with some relief if they otherwise would not see any return on their investment or expenses associated with collecting payment. However, it may also reflect negatively on their finances as well as their reputation among their clients and investors.

Yes, when debts are written-off, this must be reported as income for tax purposes unless specific exceptions apply such as bankruptcy rules or bad debts deductions under Internal Revenue Code Section 166(a). Consult your accountant or tax advisor to ensure compliance with applicable regulations regarding taxation of written-off debts.

Yes, if you have had any of your debts written off then this must be reported to credit reference agencies who will factor this into your credit score calculation going forward. It's important to keep in mind that it may take up some time before this information shows up on your credit record so don't worry if you don't see it immediately after the write-off takes place.

It is possible if you think that creditors have unjustly decided to write-off your debt or if they haven't followed correct procedures while doing so; however success isn't always guaranteed and depends on many factors such as how much proof you can provide of your inability to pay at present according to terms agreed initially etc.. You can consult legal professionals specializing in these matters for more clarity over what actions you could take in such cases.

Having some of your past debts written off could potentially impact your future borrowing potential since lenders look at several factors before approving applications including current earnings and existing liabilities etc.. Needless to say having past dues noted down as ‘written off' wouldn't bode too well although lenders generally do understand complete financial hardships so do talk openly about everything before approaching them.