Bad debts are the technical term of banking. Refers to the loan or bad debt that the bank believes cannot be recovered after taking all necessary measures. In order to meet the needs of management, banks will use the extracted reserves to write off bad debts that have reached a certain period of time. Thereby reducing the bank's non-performing accounts and non-performing rate. As a debtor, it did not actually return the debt that should be paid off. Therefore, banks have the right to continue to claim loans from borrowers.