When a company initiates a suing the debtor at an authorized dispute resolution agency such as a Court or a Commercial Arbitration Center, in addition to the Lawsuit Petition, the company needs to prepare many other documents to ensure the legitimate rights and interests of the company, as well as to provide evidence for the debtor’s obligation to pay the debt. In this article, TNTP will analyze and provide the important documents that need to be provided when initiating a suing the debtor.

1. Contract or agreement between parties

To determine the debtor’s obligation to pay the debt and the company’s right to demand payment, it is necessary to start with the contract between parties. Legally binding contracts will give rise to the rights and obligations of each party. Therefore, this is the first document that the company needs to provide to the authorized agency to prove the company’s right to demand payment from the debtor.

The terms of the contract will also affect the company’s demands, even some terms such as the agreement on the dispute resolution agency when a dispute arises will decide which agency has jurisdiction over the dispute resolution between the parties. According to the law, the company is only allowed to file a suing the debtor at the Commercial Arbitration Center when the content of the contract between parties clearly states the choice of the Commercial Arbitration Center as the dispute resolution agency or the parties agree to choose the Commercial Arbitration Center after signing the contract. In cases where the parties do not have any agreement or the contract does not mention the Commercial Arbitration Center as the dispute resolution agency, the jurisdiction for dispute resolution will always belong to the authorized Court.

In addition, the demand for the interest of the parties also depends on the content of the contract. In some cases, if the parties do not agree on the late payment interest rate or if the agreed late payment interest rate exceeds the provisions of the law, the request to apply the late payment interest rate when filing a suing the debtor must be based on the relevant provisions of the Civil Law or the Commercial Law. Therefore, the company needs to rely on the contents of the contract to make reasonable and compliant demands with the provisions of the law. If not, the dispute resolution agencies will not accept the company’s lawsuit demands

2. Debt reconciliation report

This is a very important document to provide accurate evidence of the amount of debt that the business requests the debtor to pay when initiating legal proceedings against the debtor. The debt reconciliation report is a document that records the amount of debt or the entire process of occurrence, payment, and remaining debt between the parties throughout the entire contract execution process. And most importantly, the debt reconciliation report is confirmed by authorized persons of both parties such as accountants, directors, or legal representatives of the business and the debtor. Therefore, based on this document, the business can accurately verify the amount to be requested from the debtor for payment and provide evidence to prove that the debtor has acknowledged the figures of the debt. Thus, the dispute resolution agency will have clear grounds to determine the payment obligations as well as the legitimate requirements of the business.

Although this document has great value in the litigation process at dispute resolution agencies, many businesses do not know or pay attention to the importance of the debt reconciliation report in their operations. In many cases, the entire operation process of the parties is not recorded in writing but is only stored through emails or text messages exchanged between the accountant or authorized individuals of the business. Storage forms of operational or debt information like this will not ensure the interests of both parties and in case of disputes arising, the creditor will be at a disadvantage because the dispute resolution agencies may not accept information or evidence stored on phone messages or emails. After all, this information and evidence do not have enough legal value to be considered similar to the debt reconciliation report.

3. Invoices, delivery notes, and warehouse withdrawal slips

These are documents that prove the process of fulfilling the agreement/contract between the business and the debtor. They are also important documents to prove the extent of the business’s obligations during the implementation of the agreement/contract with the debtor, as well as the receipts, expenses, and delivery of goods between the parties as the basis for proving the debt that the business requires the debtor to pay.

In addition, these documents also demonstrate that the process of implementing the agreement/contract between the parties is legal and fully documented in accordance with the law. A business can only make a legitimate claim when the process of entering into and implementing the contract is carried out in accordance with the provisions of the law.

Submitting complete delivery notes and warehouse withdrawal slips will help the competent authorities to accurately determine the process from the time the contract is entered into between the parties until the debt arises, whether the parties have delivered the number of goods and the value matches the accounts receivable reconciliation report or not, as a basis for accepting the business’s claim to initiate legal proceedings and having a clear and accurate overall view of the case

The above is an article by TNTP on the topic: “Important documents to provide when suing a debtor.” It is hoped that this article will be useful in the process of recovering debts for businesses.