1. Will bad debts on credit cards affect loans?
My credit card has a bad debt! It’s probably time to call the credit card issuing department! I would like to ask how much bad debt will affect me this time, but theoretically speaking, it will be because you put the credit card
2. How to repay bad debts of bank loans
1. The so-called bad debts refer to After the debt matures, the principal or interest has not been paid for at least one month, and is in a sluggish state but has not yet been determined as a bad debt receivable and temporary payment.
2. Based on an in-depth analysis of the causes of non-performing loans, banks can take the following targeted measures to resolve non-performing loans.
1). Cash collection
When the borrower still has a certain ability to repay, or the bank has control of part of the second source of repayment, the bank can try to collect the debt or litigate according to law. and other means to collect cash.
2). Restructuring
For non-performing loans caused by problems in the borrower's operation, management or financial status, the bank can try to restructure the borrower, guarantee conditions, repayment Properly restructure the terms, loan types, loan interest rates, etc., recombine and arrange the loan elements, improve the borrower's financial situation, enhance its solvency, so that the restructured loan can reduce the bank's credit risk, thereby improving the bank's loan quality . This requires banks to devote more due diligence resources to ensure the legality and compliance of the restructuring plan and effectively prevent companies from evading bank debts.
3). To offset debts with assets
To offset debts with assets means that when the debtor (including the borrower and the guarantor) cannot fully repay the principal and interest of the loan with monetary assets, the bank shall, in accordance with relevant laws and regulations, Regulations or by signing an asset-offset agreement with the debtor to obtain the right to dispose of various valid assets of the debtor to repay the principal and interest of the loan. It is a special form of preserving bank credit assets in accordance with the law.
4) Bad debt write-off
For non-performing loans that cannot achieve recovery value through various methods, banks should write them off on the premise of improving relevant procedures.
With the continuous development of my country's non-performing asset trading market and non-performing asset evaluation market, banks will have more and more reasonable ways and methods to transfer and resolve non-performing loans.
3. What to do when a bank loan becomes a bad debt
There are two ways to deal with losses from bad debts (also called bad debts):
1. Direct transfer Sales method. That is, when bad debts occur, the actual losses are written off directly from accounts receivable. When bad debt losses occur in Chinese state-owned enterprises, they shall be included in non-operating expenses according to regulations.
2. Allowance method. That is, the loss of bad debts is estimated on a periodic basis, converted into expenses, and recorded in the allowance account to prepare for bad debts. When the debt actually occurs, the bad debt provision will be used to offset it.
There are generally three methods for withdrawing bad debt provisions:
1. Sales percentage method, that is, based on past experience, estimate a percentage of the amount of goods sold on credit, and then calculate it based on each Provision is made by multiplying the credit sales amount for the period by the bad debt percentage.
2. Account aging analysis method, which estimates bad debts based on the length of time of accounts receivable. Generally speaking, the longer the arrears, the greater the possibility of bad debts.
3. The accounts receivable balance percentage method, which estimates bad debts based on the percentage of accounts receivable balance, is a combination of the first two methods. With the development of the market economy, the development of commercial credit, and the diversification of commodity sales methods, the accounting profession believes that the allowance method can also be used to calculate bad debt provisions in China.
Extended information:
The following situations are recognized as bad debts:
1. The borrower and the guarantor declare bankruptcy, close down, dissolve or cancel in accordance with the law, and terminate Legal person status, the financial enterprise's claims that cannot be recovered after recovering from the borrower and guarantor.
2. If the borrower dies, or is declared missing or dead in accordance with the provisions of the "General Principles of the People's Republic of China and Civil Law", the financial enterprise shall pay off its property or inheritance in accordance with the law and pursue compensation from the guarantor. Later, the debt could not be recovered.
3. The borrower suffers a major natural disaster or accident, suffers huge losses and cannot obtain insurance compensation, or is truly unable to repay part or all of the debt after insurance compensation, and the financial enterprise shall repay and repay its property. A creditor's right that cannot be recovered after the guarantor pursues repayment.
4. Although the borrower and the guarantor have not declared bankruptcy, closure, dissolution, or revocation in accordance with the law, they have completely stopped business activities, and their business licenses have been canceled or revoked by the industrial and commercial administration departments at or above the county level in accordance with the law. , the creditor's rights that the financial enterprise failed to recover after pursuing repayment from the borrower and guarantor.
5. Although the borrower and the guarantor have not declared bankruptcy, closure, dissolution, or cancellation in accordance with the law, they have completely stopped business activities or their whereabouts are unknown, have not registered with the industry and commerce, or have not participated in the annual industrial and commercial inspection for more than two consecutive years. Creditor's rights that financial companies have failed to collect after pursuing repayment from borrowers and guarantors.
6. The borrower has violated criminal laws and has been sanctioned in accordance with the law. The borrower's property is insufficient to repay the debt, and there are no other debt holders. The financial enterprise is indeed unable to recover the creditor's rights after recovery.
7. Since the borrower and guarantor were unable to repay their due debts, the financial enterprise resorted to legal action. After enforcement against the borrower and guarantor, neither the borrower nor the guarantor had property to enforce, and the ruling was terminated. Claims that a financial enterprise cannot recover after termination or suspension of execution.
8. After taking legal action against the borrower and guarantor, the case was rejected or ruled to exempt (or partially exempt) the debtor from liability due to the incompatibility or demise of the borrower and guarantor; or due to the loan; If the contract, guarantee contract and other rights documents are lost or the statute of limitations has expired, the claim will not be accepted or supported, and the financial enterprise's claim cannot be recovered after recovery.
9. Due to the above reasons 1 to 8, the borrower is unable to repay the due debt, and the financial enterprise obtains debt-repaired assets in accordance with the law, and the debt-repaired amount is less than the difference between the principal and interest of the loan, and the debt cannot be recovered after recovery
10. When an advance is made when issuing a letter of credit, handling an acceptance bill, or issuing a letter of guarantee, the applicant and the guarantor are unable to repay the advance due to reasons 1 to 9 above, and the financial enterprise is still unable to repay the reimbursement. Advances recovered.
11. For external investments by financial enterprises with investment rights in accordance with national laws and regulations, due to the fact that the invested enterprise declares bankruptcy, closure, dissolution or cancellation in accordance with the law, and terminates its legal person status, the financial enterprise shall undergo liquidation and recovery. equity that cannot be recovered later.
12. After a financial enterprise is approved to dispose of claims or equity through market means such as package sales, public auctions, and transfers, the difference between the sale transfer price and the book value can be determined as bad debts.