What is a Trustee? In Which Cases is the Trustee's Practice Certificate Revoked?
What is an Insolvency Practitioner?
Pursuant to Article 4 of the Bankruptcy Law 2014, the following provisions apply:
Interpretation of Terms
In this Law, the terms below are understood as follows:
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A Secured Creditor is an individual, agency, or organization that has the right to demand a business or cooperative to fulfill the obligation of paying a debt which is secured by the assets of the business, cooperative, or a third party.
A Partially Secured Creditor is an individual, agency, or organization that has the right to demand a business or cooperative to fulfill the obligation of paying a debt which is secured by the assets of the business, cooperative, or a third party where the value of the secured assets is less than that debt.
7. An Insolvency Practitioner is an individual practicing in the management and liquidation of assets of a business or cooperative that is unable to pay its debts during the bankruptcy process.
An Asset Management and Liquidation Business is a business that practices in the management and liquidation of assets of a business or cooperative that is unable to pay its debts during the bankruptcy process.
The Person Conducting Bankruptcy Proceedings includes the Chief Judge of the People's Court, Judges; the Chief Procurator of the People's Procuracy, Procurators; Insolvency Practitioners, Asset Management and Liquidation Businesses; the Chief of the Civil Enforcement Agency, and Executors during the bankruptcy process.
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Thus, an Insolvency Practitioner is an individual practicing in the management and liquidation of assets of businesses and cooperatives that are unable to pay their debts during the bankruptcy process.
Who is Eligible for an Insolvency Practitioner Certificate?
According to Article 12 of the Bankruptcy Law 2014 regarding the conditions for practicing as an Insolvency Practitioner:
Conditions for Practicing as an Insolvency Practitioner
1. The following persons are eligible for an Insolvency Practitioner Certificate:
a) Lawyers;
b) Auditors;
c) Individuals with a bachelor's degree in law, economics, accounting, finance, or banking and have at least 5 years of experience in the field they were trained in.
- Conditions for practicing as an Insolvency Practitioner are:
a) Fully capable of civil acts;
b) Having good moral qualities, a sense of responsibility, integrity, honesty, and objectivity;
c) Possessing an Insolvency Practitioner Certificate.
- The Government of Vietnam details the issuance of Insolvency Practitioner Certificates and the state management of Insolvency Practitioners.
Thus, individuals eligible for an Insolvency Practitioner Certificate include:
- Lawyers- Auditors- Individuals with a bachelor's degree in law, economics, accounting, finance, or banking and have at least 5 years of experience in the field they were trained in
Under What Circumstances is an Insolvency Practitioner Certificate Revoked?
According to Article 15 of the Bankruptcy Law 2014, regarding the revocation of an Insolvency Practitioner Certificate:
Revocation of Insolvency Practitioner Certificate
1. A person who has been issued an Insolvency Practitioner Certificate and falls into one of the following categories will have their Insolvency Practitioner Certificate revoked:
a) Is an official or public employee; officers, professional soldiers, or national defense workers in agencies or units of the People's Army; officers, or non-commissioned professional officers in agencies or units of the People's Public Security forces;
b) Has been convicted and the judgment is effective according to law;
c) Has had their lawyer or auditor practicing certificate revoked;
d) Has changed as specified in points a and b, clause 1, Article 46 of this Law in two or more bankruptcy cases.
- The Government of Vietnam details the revocation of Insolvency Practitioner Certificates.
Thus, an Insolvency Practitioner Certificate is revoked in the following cases:
- The person who has been issued an Insolvency Practitioner Certificate is an official or public employee; officers, professional soldiers, or national defense workers in agencies or units of the People's Army; officers, or non-commissioned professional officers in agencies or units of the People's Public Security forces.- The person who has been issued an Insolvency Practitioner Certificate has been convicted and the judgment is effective according to law.- The person who has been issued an Insolvency Practitioner Certificate has had their lawyer or auditor practicing certificate revoked.- The Insolvency Practitioner has changed in the following cases in two or more bankruptcy matters:+ Violating the obligations as specified+ There is evidence proving the Insolvency Practitioner or the Asset Management and Liquidation Business is not objective while performing their duties
