Essential Documentation for Addressing Bad Debt Losses
The actual reasons for bad debt losses are different, and the supporting documents required are different.
- If the debtor goes out of business or absconds, he or she should obtain a certificate of “undeliverable” from the postal service.
- If it is a settlement, the court’s settlement transcript or ruling must be accompanied by the court’s settlement record or ruling. The settlement by the commercial or industrial association must be furnished with the settlement transcript.
- If it is a declaration of bankruptcy or reorganization according to law, a court ruling must be submitted
- When applying for compulsory execution by the court, if the debtor’s property is insufficient to repay the debt or there is no property available for compulsory execution, a certificate of creditor’s rights issued by the court should be submitted.
- If the debtor is liquidating in accordance with foreign laws, it should provide certification documents proving the completion of liquidation in accordance with foreign laws and regulations, as well as certification documents from my country’s embassy, consulate, commercial representative or foreign trade agency stationed abroad.
- If the debt is overdue for 2 years, you should obtain a certificate of deposit from the postal enterprise indicating that it has been “delivered”, a certificate of deposit returned with the reason of “rejection”, or a collection certificate from the court, including claiming a payment order in accordance with the law, Documents supporting enforcement or prosecution procedures.
