Reasons and process for the write-off of receivables

Write-off of receivables making in the National Employment Service

Write-off of receivables in the National Employment Service is regulated by Regulation on the write-off of receivables in the National Employment Service (“Official Herald of the Republic of Serbia”, No. 14/2014).

Write-off of receivables is the cessation of debtor-creditor relationship, by which the National Employment Service, as a creditor, written off receivables against the debtor under the conditions and in the manner prescribed by the Regulation.

The Regulation shall regulate:

  • the reasons on which the receivables of the National Employment Service may be canceled
  • the documentation which shall prove the fulfillment of the reasons for the write-off of receivables
  • competence and procedure before the Commission for preparation of the proposals for write-off of the receivables
  • competence of the sector / branch, and
  • the deadlines for completion and submission of cases to the Commission, which, after deliberation, adopted Minute with the proposal for write off of the receivables shall submit to the Managing Board.

The receivables, in terms of the Regulation is entitled the National Employment Service as a creditor to require from the debtor settlement of mature but unpaid financial obligation arising from the principal debt and interest.

The debtor may be a natural person, the legal successor of a natural person, legal entity and the legal successor of the legal entity.

There are two categories of debtors: the debtor user of financial compensation and the debtor who used the funds according to the measures of active employment policy, who hasn’t fulfilled the statutory, or contractual obligations.

Reasons for the execution of the write-off of receivables

The Managing Board of the National Employment Service can perform write-off of receivables based on the Commission proposal for the preparation of the proposal to write off of receivables, for the following reasons:

  • the death of the debtor
  • complete loss of working ability of the debtor or the debtor’s illness due to which the debtor can not hire or retain employment
  • illness of a child of the debtor
  • when a court in execution procedure determines that the debtor other than a flat or house for habitation, where he lives with the members of his household do not own other real estate which would comply with the law may be subject of execution
  • retno things of debtor (furniture, electrical appliances and other things that are not necessary for the normal and customary life of the debtor), and the same can not be sold by public auction or direct agreement
  • when a court in execution procedure determines that the debtor does not hold any assets that may be subject of execution
  • unknown domicile or residence of the debtor
  • when the court in bankruptcy proceedings establishes that the bankruptcy debtor does not own the assets from which the bankruptcy creditors can be settled or if the National Service doesn’t settle in full receivables in the bankruptcy proceedings
  • claims of low value
  • other cases in accordance with law.

Process for the write-off of receivables

Process for the write-off of receivables is run by application of the debtor or the proposal of the organizational unit of the National Employment Service, if the write-off of receivables is done for the reasons stated above.

The request for write-off of receivables is submitted to the organizational unit of the national department competent by the city of conclusion of the contract from which the debt arose, at the registry or by mail or to competent sector in the Directorate of National department.

For the preparation of proposals for write-off of receivables shall be established the Commission for the preparation of proposals for write-off of receivables by the Managing Board of the National Employment Service.

Following the submission of debtor’s petition or the proposal of the organizational unit of the National Employment Service, shall access to consideration of the merits by the Commission for preparation of proposal for the write-off of receivables.

Based on the proposal of Commission for preparation of proposal for the write-off of receivables, the Managing Board of the National Employment Service makes a decision on write-off of receivables.

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