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Generally the answer is yes. In your account agreement there may be a clause governing what is called the "right of offset" where the bank retains the right to take funds from your account to pay debts owed to that same bank. They are also responsible for freezing or removing funds if ordered to do so by a court or a government levy. This may not apply to real estate debt in some states, and does not apply if the debt is not held by the bank and no legal order to remove or freeze the money has been made.
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Which account is opened for provision for doubtful debts?
Provison for doubtful debts, under liabiliity, will be created by debiting bad debts account.
Is bad debts a personal account or nominal account?
Bad debts accounts is a nominal account shown in income statement and use to reduce the accounts receivable amount.
If you owe Maryland taxes can they take your federal return?
Yes they can! They will offset your federal return if you do not address any debts from that state.
How do you do double entry on bad debts recovered?
before you do the double entry for the bad debts recovered, you have reinstate the debt by making the following entries:- Dr. debtors account Cr. bad debts recovered account after this you will have to the double entry for this:- Dr.cash or bank Cr. debtors account that's all u have to do!!
If the bank charged off the account and send a 1098 form to the IRS can the bank later sell the account to the collection company?
Banks can sell debts to collection agencies at any time. The write off was likely done after the sale anyhow, and the 1098 was for the amount of money the bank lost overall.
Can a bank close your account after bankruptcy if you never bounced checks and have no line of credit with them?
No, the banks can not close your saving and checkings account. If you have credit card debts then yes they can close your credit cards.
Which account is opened for provision for doubtful debts?
Provison for doubtful debts, under liabiliity, will be created by debiting bad debts account.
Why Banks are institutions whose debts are accepted as payment of other people'liabilities?
Why Banks are institutions whose debts are accepted as payment of other people'liabilities?
What has the author Darrell Delamaide written?
Darrell Delamaide has written: 'Debt shock' -- subject(s): Banks and banking, International, Debts, external, Debts,External, Developing countries, External Debts, International Banks and banking
The effects of bad and doubtful debts on the profitability of a commercial banks in nigeria?
Bad and doubtful debts decrease the amounts of profits that a commercial bank in Nigeria can make. Because the banks cannot collect these debts, they make significant losses.
Is bad debts a personal account or nominal account?
Bad debts accounts is a nominal account shown in income statement and use to reduce the accounts receivable amount.
Is bad debt expense account and allowance for uncollectible account is same account?
Bad debt expense account is the actual expense account for bad debts while allowance for doubtful account is the provision for account in case of any bad debts occurs in future.
Can a tax refund be decreased if a checking account is being offset?
This could be possible. The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, is authorized to operate the Treasury Offset Program. In addition to recovering back taxes, this program may also be used to recover and offset past due child support, Federal agency non-tax debts, or state income tax obligations.
If you owe Maryland taxes can they take your federal return?
Yes they can! They will offset your federal return if you do not address any debts from that state.
How might one have debt with a bank?
Debts that can be incurred at a bank include defaulting on a loan, overdrafts and overdraft fees, unpaid account fees, interest on unpaid loans and fees for custom banking features. One of the most common debts associated with banks is the ATM / automatic tell machine fees.
In what ways can one cancel IRS debts?
One can simply pay off the IRS debts. Another way one can cancel IRS debts is to get loans from banks to pay off the debts. Also, one can borrow money from peers to pay off IRS debts.
How do you do double entry on bad debts recovered?
before you do the double entry for the bad debts recovered, you have reinstate the debt by making the following entries:- Dr. debtors account Cr. bad debts recovered account after this you will have to the double entry for this:- Dr.cash or bank Cr. debtors account that's all u have to do!!
