Bad debts refer to accounts receivable that have passed the repayment period, can not be recovered after collection, and are in a sluggish state for a long time, which may become bad debts. Bad debts are the result of not being settled in time, and also refer to the property that cannot be recovered because the other party does not return it.
Identification method
1) The borrower and guarantor are declared bankrupt, closed, dissolved or revoked according to law, and their legal person status is terminated, and the financial enterprise fails to recover the creditor's rights after claiming compensation from the borrower and guarantor;
2) The borrower dies, or according to
3) Creditor's rights that cannot be recovered after the borrower suffers huge losses due to major natural disasters or accidents, fails to obtain insurance compensation, or is really unable to repay part or all of the debts after obtaining insurance compensation, and the financial enterprise has paid off its property and recovered from the guarantor;
(4) Creditor's rights that have not been declared bankrupt, closed, dissolved or revoked by the borrower and guarantor according to law, but have completely stopped their business activities, and their business licenses have been cancelled or revoked by the administrative department for industry and commerce at or above the county level according to law, and the financial enterprise has not recovered after claiming compensation from the borrower and guarantor;
5) The borrower and guarantor have not been declared bankrupt, closed down, dissolved or revoked according to law, but their business activities have completely stopped or their whereabouts are unknown, they have not gone through industrial and commercial registration, or they have not participated in the annual industrial and commercial inspection for more than two years in a row, and the financial enterprise has recovered the creditor's rights that have not been recovered after the borrower and guarantor have recovered them;
6) After the borrower violates the criminal law and is punished according to law, the financial enterprise cannot recover the creditor's rights, and its property is insufficient to repay the borrowed debts, and there are no other debtors;
7) Creditor's rights that cannot be recovered by the financial enterprise after the borrower and guarantor can't repay the debts due and the borrower and guarantor have no property to execute after the court enforces them;
8) After taking legal action against the borrower and the guarantor, the court dismissed the prosecution or ruled to exempt (or partially exempt) the debtor's liability for reasons such as the mismatch or disappearance of the subject qualifications of the borrower and the guarantor; Or the creditor's rights that the court will not accept or support because of the loss or loss of the limitation of action of the loan contract, guarantee contract and other rights, and the financial enterprise cannot recover after recovery;
9) Creditor's rights that cannot be recovered after the borrower fails to repay due debts due to the above reasons of 1 to 8, and the financial enterprise obtains debt-paying assets according to law, and the debt-paying amount is less than the difference between loan principal and interest;
10) When an advance payment occurs in opening a letter of credit, handling an acceptance bill, opening a letter of guarantee, etc. If the applicant of the letter of credit and the guarantor can't repay the advance payment due to the above reasons of 1 to 9, the financial enterprise still can't recover the advance payment after recovery;
1 1) The foreign investment of financial enterprises that have the right to invest according to national laws and regulations, and the equity that financial enterprises cannot recover after liquidation and recovery due to the bankruptcy, closure, dissolution, revocation and termination of legal person status of the invested enterprises;
12) After a financial enterprise is approved to dispose of its creditor's rights or equity by market means such as package sale, public auction and transfer, the difference between the sale and transfer price and the book value can be recognized as bad debts;