Lawyers’ Advice for Enterprise on Bad Debt

Bad debt is the amount of long past-due debt or the debt with documents under disputes. With high reputable legal services for bad debt, Dragon Law Firm will support to all Clients.

In the debt collection, lawyers in debt recovery through hotline 1900.599.979 in Dragon Law offer some reasons why debt will become bad debt:

1. Debtor want to hold the capital for business operation due to the debt without interest:

The debtor appropriates the debt amount is expressed in the following types:

- Overdue debt due to many reasons such as: the investor did not paid, accept the finished work, and they cannot be returned money to the contractor (for the debt incurred in construction), or by poor quality goods, not sold, sold at low prices … (for debt in commerce, production)

- Pay less, pay "drip", deliberately prolong term of payment

- Constantly seeking to evade

- Do not sign any papers, documents confirmed to other liabilities (without the written response)

If the more time takes, the more difficulty comes to creditors:

- If debtors is the non-state enterprises, they will have opportunities to disperse properties ...

- If not, it is difficult for collect money in case they changed the leadership structure to be avoided and blamed each other ...

2. Due to the debt profile under dispute:

Disputing documents is lack legal documents or lost documents due to transaction or disagreement, conflict of two parties and they cannot lead to agree some documents such as: Minutes of the volume confirmation, minutes of acceptance, settlement of unit prices, the quality of works (for construction) ... goods delivery, discount, commodity quality... (for commerce) ...

 This cause may occur some situations:

- Debtors are well-intentioned to pay but due to not enough documents, they cannot fulfil the debt.

- Debtors intend to avoid paying, and use the reason of lack documents and does not pay the debt.

Actually, the enterprises can restore documents. In case of prolong the time, they can "create" the documents and evidence detrimental to creditors.

3. Debtor is not ability to pay:

The debtor fell into this situation is also popular because of the cause: their business is not effective ... so in this case, it is not easy to recover the debt soon, but if any measures are applied appropriately, debt collector will help creditors recover as soon as the debtor is able to pay back.

Three above basic causes are the most common of the many causes of bad debt incurs currently. Dragon Law Firm hope to get useful solutions to curb this situation. If your company itself cannot solve the past due debt by themselves, Customers just quickly transfer the file to a professional debt collection units such as law firm in Vietnam, Dragon Law company to be supported.

Dragon Law Firm with high experience in debt solutions to enterprises, please contact Dragon Law for more advice:

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Dragon Law Firm - Hotline: 1900.599.979

Website: www.vanphongluatsu.com.vn - www.dragonlaw.vn

Email: dragonlawfirm@gmail.com

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