Bad loans: what they are and how to behave

When it comes to credits and debts, one always moves in the very unclear territory. This is because you do not always have the necessary knowledge to deal with certain situations and you risk making mistakes.

Precisely for this reason, we are going to analyze what we mean when we talk about bad debts.

Bad credit: what is it?

Let’s first define what we are talking about. In the financial sphere, credit is defined as bad debt when it is highly unlikely that it will be paid by the debtor. Automatically bad credit is considered if it has expired for at least 6 months and is of a modest amount. 

Furthermore, it must be emphasized that today, what is the tax practice also speaks of the non-collectability of credit when the creditor can provide documented proof with certain and precise elements that leave no room for doubt. In this case, we are talking about credit recovery activities that have had a negative outcome; we speak of proven insolvency of the debtor; there is talk of unavailability of the same and, finally, of insolvency procedures such as bankruptcy, debt restructuring agreement, etc.

What to do in case of bad credit

The first thing to do, therefore, is to prove that credit is irrecoverable. This is possible by producing documentation that analytically certifies the definitive nature of the loss suffered. According to what has been established by a recent circular from the Ministry of the Interior, in the event that a detailed report issued by a debt collection agency is provided, able to certify the negative outcome of the collection attempt, this can be considered as proof valid to declare the unpaid credit uncollectible.

Therefore, contacting an agency of this type is certainly the best solution in this specific case since, in addition to the declaration certifying the bad debt, this can help the creditor at 360 degrees, providing a series of tools aimed at resolving the matter. But it does not end here: a credit recovery agency is authorized, in fact, to proceed with specific economic and patrimonial assessments, which allow you to go and find out what is the best type of procedure to reach the solution of the dispute.

In fact, starting an investigation on the financial and economic situation of the debtor helps not a little in solving the problem, and only a credit recovery agency is able to do all this in the shortest possible time. Wasting time and losing money, in fact, are two things that should always be avoided regardless: after all, the ancient saying that time is money has never been so true, because in this case, you risk seeing the sums evaporate. otherwise, they should be at your disposal. Credits, whether due or not, must always be obtained, because they are an inalienable right of those who accrue them.