From bad loans to court as 1.85 million accounts enter legal process

Thailand’s household debt problem is extending beyond non-performing loans (NPLs), with credit bureau data showing 1.85 million loan accounts involving about 580 billion baht in debt have moved into legal proceedings.

The figures, provided by Surapol Opasatien, president of the National Credit Bureau, based on data available as of May 2026, show how financial difficulties can progress from missed repayments to bad debt and eventually court action.

Credit bureau records show that borrowers with bad debt of up to 100,000 baht across all accounts number about 3.1 million people, covering 4.3 million accounts. Their combined outstanding bad debt stands at around 105 billion baht.

A broader group of borrowers with NPLs recorded in the credit bureau database totals 5.1 million people with 9.5 million accounts and combined debt of about 1.3 trillion baht. The figure excludes debts not collected by the credit bureau, including savings cooperative loans, student loans from the Student Loan Fund, and unpaid mobile phone and internet bills.

From bad debt to court proceedings

Beyond the number of people and accounts classified as bad debt, credit bureau data also highlights borrowers whose cases have progressed into the legal system.

Under the legal process, when a creditor files a claim for repayment and the court accepts the case, the loan account receives an Account Status Code 30 after proceeding through litigation, a court ruling and enforcement procedures.

Surapol said the process begins with bad debt before developing into legal proceedings. After a court judgement, the case can move into debt enforcement, with the entire process potentially lasting up to 10 years.

Among borrowers with total debt of no more than 100,000 baht, around 410,000 people with more than 500,000 loan accounts and approximately 21 billion baht in debt are currently in legal proceedings until enforcement is completed.

This group represents around 13% of people with bad debt below 100,000 baht. In other words, around 13 out of every 100 borrowers in this category have loan accounts that have reached the legal process stage under the relevant account status code.

Although the debt amount per borrower may be relatively limited, entering legal proceedings changes the nature of the problem from repayment difficulties and NPL classification into a process with longer-term legal consequences.

“For a debtor who is undergoing legal proceedings, it is not an easy situation because it affects their morale, physical condition and the lives of people facing the problem,” Surapol said.

1.85 million accounts now in legal status

Looking at all borrowers who have reached the legal stage, credit bureau data shows the scale is considerably larger.

Currently, about 1.1 million borrowers with approximately 1.85 million loan accounts and total debt of around 580 billion baht are recorded as being in this status.

These borrowers did not enter the legal process immediately. They had previously passed through the NPL stage before their cases developed into court proceedings and other legal steps.

The data reflects the final stages of a debt problem that can begin when borrowers fail to meet repayment conditions, leading accounts to become non-performing loans. If the issue remains unresolved, creditors may pursue legal action, followed by enforcement after a court judgement.

The process does not occur overnight but develops over time, turning a financial problem into a legal matter for some borrowers.

Warning over intentional debt avoidance

As household debt remains elevated, another issue receiving attention is the group described as “debt dodgers” who deliberately avoid repayment despite having the ability or intention to pay.

Surapol warned that unpaid debt does not affect only creditors, as lending funds come from deposits held by savers and are part of the wider financial system.

“I want to remind those who are thinking of becoming ‘debt dodgers’ or refusing to repay: think carefully before taking action. When legal cases arise, they affect everyone around us,” he said.

Once an account enters litigation and enforcement procedures, options for debt management become more limited, while the impact on borrowers and their families can continue for years.

For borrowers facing genuine financial difficulties, ignoring the problem or avoiding contact with creditors may not provide a solution. They should discuss options with creditors, seek assistance from mediators, or contact financial regulators through the 1213 hotline for advice and possible solutions.

Surapol said negotiations, debt restructuring and finding solutions with creditors should be considered before a debt problem reaches the legal stage.

The credit bureau figures show that household debt cannot be measured only by the amount of money involved, but also by the number of people, accounts and families affected when unpaid loans progress into legal proceedings.

Source: Bangkokbiznews