Certificate of uncollectibility:
The certificate of uncollectibility attests to the uncollectibility of a debt. It can be provided by a collection company or a judicial liquidator. This document, provided at the request of the creditor, allows him to justify theaccounting entry of the losses generated and the recovery of the collected VAT.
This certificate allows :
- Justify the uncollectibility of a debt to your accountant
- To write off this receivable
- If applicable, recover VAT in accordance with article 271 annex IV of the CGI
When can a certificate of uncollectibility be issued?
This certificate can be issued once all possible actions have been exhausted:
- In a judicial liquidation without distribution to non-priority creditors
- In case of prescription or foreclosure of the claim
- When paying with a stolen check
- If the debtor does not show up and has not left an address
There are three ways to obtain a certificate of uncollectibility:
Or by the Trustee during a liquidation procedure of the debtor
Or by the bailiff in charge of the judicial recovery of the debt
Or by a collection agency, a regulated profession that can issue this certificate at a lower cost than the first two mentioned.
The concept of uncollectibility
A debt is considered uncollectible if :
- the claim is prescribed by law.
- the claim is owed by a debtor subject to a judicial reorganization procedure
- the claim is owed by a debtor subject to judicial liquidation proceedings
Please note! Concerning the case of claims not declared to the liquidators within the two-month time limit at the opening of the procedure, they are not taken into account in the inventory of liabilities and the absence of declaration no longer has any effect on the extinction of the claim. Thus, in order to write off the claim, it is necessary to prove the irrecoverable nature of the claim, in particular by putting forward the failure of the legal proceedings initiated against the debtor.