What will happen to bad debts of banks?
1. Auction the collateral or find a guarantor to repay it. If there is collateral or guarantor at the time of loan application, you can sell assets to recover funds.
2. If the lender dies, the legacy left before his death needs to be used to pay off debts. If the estate is not paid off, it shall be returned by the heir. Of course, the heirs can also choose not to inherit the estate, and the bank will accept it.
3. If the enterprise owes money to repay the loan, but there is a broad market space, the bank will provide the enterprise with liquidity, let the enterprise continue to open, and slowly repay the loan by borrowing the new and returning the old.
4. Collect bad debts from banks through financial asset management companies. At present, four asset management companies, Cinda, Dongfang, Great Wall and Dongrong, have been established in China to collect bad debts, that is, official collection.