What is the prescriptive period for initiating a lawsuit to collect debts in Vietnam?

What is the prescriptive period for initiating a lawsuit to collect debts in Vietnam?

Pursuant to Article 429 of the Civil Code in 2015 stipulating prescriptive period for initiating legal action with respect to contracts as follows:

Prescriptive period for initiating legal action with respect to contracts

The prescriptive period for initiating legal action to request a court to resolve a dispute relating to a contract is three years from the date on which the party entitled to request knows or should know that their lawful rights and interests are infringed.

Pursuant to Article 463 of the Civil Code in 2015 stipulating contracts for loan of property as follows:

Contracts for loan of property

Contract for the loan of property means an agreement between parties whereby a lender delivers property to a borrower. When the loan falls due, the borrower must repay the lender property of the same type in accordance with the correct quantity and quality, and must pay interest if so agreed or so provided by law.

As regulations above, a borrower may initiate a lawsuit to collect debt after three years from the date on which the lender fail to fulfill their debt repayment obligation.

What is the prescriptive period for initiating a lawsuit to collect debts in Vietnam? - Image from Internet

Do the children have the right to collect debts on behalf of their deceased parents in Vietnam?

Pursuant to Article 463 of the Civil Code in 2015, contract for the loan of property means an agreement between parties whereby a lender delivers property to a borrower. When the loan falls due, the borrower must repay the lender property of the same type in accordance with the correct quantity and quality, and must pay interest if so agreed or so provided by law.

Pursuant to Article 626 of the Civil Code in 2015 stipulating rights of testators as follows:

Rights of testators

A testator has the following rights:

1. Appoint heirs or to deprive an heir of the right to inherit the estate;

2. Determine those parts of the estate which each heir is entitled to;

3. Reserve part of the estate as a gift or for worship purposes;

4. Designate heirs to perform obligations;

5. Appoint a custodian of the will, an administrator of the estate, and a distributor of the estate.

As regulations above, a testator has the right to designate heirs to perform obligations. Therefore, the children have the right to collect debts on behalf of their deceased parents in Vietnam.

What are the fines for unlawfully detaining a person in order to collect a debt in Vietnam?

Pursuant to Article 15 of the Decree 144/2021/ND-CP stipulating violations against regulations on causing damage to property of other organizations or individuals as follows:

Violations against regulations on causing damage to property of other organizations or individuals

1. A fine of from VND 2.000.000 to VND 3.000.000 shall be imposed for any of the following violations:

a) Stealing property, intruding into residential areas, warehouses or other places under the management of another person for the purpose of theft or appropriation of property

b) Blatantly appropriating property;

c) Taking a loan, borrowing, leasing property of another person or receiving property of another person under a contract, then uses deception to appropriate it or refuses to repay the loan or return the property when the repayment or return of property is due despite he/she is capable of doing so.

d) Taking a loan, borrowing, leasing property of another person or receiving property of another person under a contract and then fails to repay loan or return property and uses it for illegal purposes which result in the offender's inability to repay the loan or return the property

dd) Negligence that results in damage to property of the State, authorities, organizations and enterprises.

2. A fine of from VND 3.000.000 to VND 5.000.000 shall be imposed for any of the following violations:

a) Destroying or deliberately damaging property of organizations or individuals, except for violations mentioned in Point b Clause 3 Article 21 of this Decree;”.

b) Using deception or creating circumstances to force another person into giving money or property;

c) Cheating or defrauding in brokerage, instruction or introduction of services of trading of house and land or other property;

d) Buying, selling, concealing, or using property of another person despite knowing that the assets were illegally obtained;

dd) Using, buying, selling, mortgaging, illegally pledging or impounding property of another person;

e) Extorting property without bringing criminal prosecution

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As regulations above, a fine of from VND 3.000.000 to VND 5.000.000 shall be imposed for unlawfully detaining a person in order to collect a debt in Vietnam depending on the nature of the case.

Note: The fine amount for above violations is the fine imposed on individuals (according to Clause 2 Article 4 of Decree 144/2021/ND-CP).

Best regards!