Funding Circle "Bad Debt" status??

itm2

I've just been analysing my portfolio with Funding Circle, and have noticed that 28% of my investments (measured in terms of principal remaining) has a status of "Bad Debt". Of those, 75% have a "Next payment date" specified, and the remaining 25% have a blank entry for Next payment date.
What are the implications of these Bad Debt items, in terms of my chances of recovering any part of the loan?
I've tried finding this out from Funding Circle's helo pages, but I can't find any explanation of the "Bad Debt" status.

Malthusian

It means the borrower has defaulted on interest or capital.

A specific payment date means "we hope the borrower will pay you something on this date, but they haven't paid up in the past, so who knows whether that will actually happen" and the lack of one means "we've no idea when or if they'll pay you anything".

What are the implications of these Bad Debt items, in terms of my chances of recovering any part of the loan?

Standard practice is to write them off as worthless and treat any recovery as a bonus.

itm2

Malthusian wrote: »

It means the borrower has defaulted on interest or capital.

A specific payment date means "we hope the borrower will pay you something on this date, but they haven't paid up in the past, so who knows whether that will actually happen" and the lack of one means "we've no idea when or if they'll pay you anything".

Standard practice is to write them off as worthless and treat any recovery as a bonus.

Many thanks for clarifying.