Can enterprises renounce the right over debt claim when they are declared bankrupt in Vietnam?
Can enterprises renounce the right over debt claim when they are declared bankrupt in Vietnam? The business that I am the owner and manager of has been declared bankrupt, the business has some uncollected money from some other individuals and organizations. Can I claim these debts? Am I prohibited from starting an enterprise if I don't claim these debts?
Can enterprises renounce the right over debt claim when they are declared bankrupt in Vietnam?
Pursuant to Article 48 of the 2014 Bankruptcy Law, which stipulates prohibited activities of insolvent entities on initiation of bankruptcy process as follows:
1. After the Decision on the initiation of bankruptcy is made, the insolvent entity is prohibited from:
a) Dispersing and hiding assets;
b) Paying the unsecured debts, except the unsecured debts incurred after the initiation of bankruptcy process and the employees’ salaries prescribed in Point c Clause 1 Article 49 of this Law.
c) Renouncing the right over debt claim;
d) Making an unsecured debt into a secured or partly-secured debt with collateral which are assets of the entity.
2. Any transaction prescribed in Clause 1 this Article is invalid and shall be handled according to Article 60 of this Law.
According to this Article, the act of renouncing the right over debt claim is a prohibited activity after the Decision on the initiation of bankruptcy is made in Vietnam. So your business must not renounce the right over debt claim.
Can owners who renounce the right over debt claim be prohibited from establishment of enterprises in Vietnam?
Pursuant to Clause 3, Article 130 of the 2014 Bankruptcy Law, there are provisions as follows:
3. If any manager of the entity declared bankrupt intentionally commits the violations against the regulations in Clause 1 Article 18, Clause 5 Article 28 and Clause 1 Article 48 of this Law, the Judge shall consider and give a Decision on the prohibition of the establishment of the enterprise or cooperative and working as manager of any enterprise or cooperative within 03 years from the day on which People’s Court issues the Decision on declaration of bankruptcy.
According to this Article, when you hold the management position of an enterprise but renounce the right over debt claim of the declared bankrupt enterprise, you may be prohibited from establishing an new enterprise for 3 years in Vietnam.
Best Regards!
