Guidance on request for reconsidering the dismissal of the written requests for initiation of bankruptcy process in Vietnam

Guidance on request for reconsidering the dismissal of the written requests for initiation of bankruptcy process in Vietnam (Internet image)

1. Guidance on Request for reconsidering the dismissal of the written requests for initiation of bankruptcy process in Vietnam

Guidance on Request for reconsidering the dismissal of the written requests for initiation of bankruptcy process in Vietnam according to Article 36 Bankruptcy Law 2014 is as follows:

- Within three working days from the date of receiving the decision to return the petition to initiate bankruptcy proceedings from the People’s Court, the petitioner has the right to request reconsideration, and the same-level People’s Procuracy has the right to petition the Chief Judge of the People’s Court that issued the decision to return the petition.

- Within three working days from the date of receiving the request for reconsideration or petition related to the decision to return the petition to initiate bankruptcy proceedings, the Chief Judge of the People’s Court that issued the decision to return the petition must issue one of the following decisions:

+ Uphold the decision to return the petition to initiate bankruptcy proceedings;

+ Annul the decision to return the petition to initiate bankruptcy proceedings and accept the petition in accordance with the regulations of the Bankruptcy Law 2014.

- Within five working days from the date of receiving the decision on the request for reconsideration or petition related to the decision to return the petition to initiate bankruptcy proceedings, the petitioner has the right to request reconsideration again, and the People’s Procuracy has the right to petition the Chief Judge of the higher-level People’s Court to reconsider and resolve the case.

- Within seven working days from the date of receiving the request for reconsideration or petition regarding the return of the petition to initiate bankruptcy proceedings, the Chief Judge of the higher-level People’s Court must issue one of the following decisions:

+ Uphold the decision to return the petition to initiate bankruptcy proceedings;

+ Annul the decision to return the petition to initiate bankruptcy proceedings and request the People’s Court to accept the petition according to the provisions of the Bankruptcy Law 2014.

- The decision on the reconsideration request or petition by the Chief Judge of the higher-level People’s Court is final. This decision must be sent to the petitioner, the same-level People’s Procuracy, the People’s Procuracy that made the petition, and the People’s Court that issued the decision to return the petition.

2. Regulation on the Decisions on the initiation of bankruptcy process or the refusal to initiate bankruptcy process in Vietnam

Regulation on the Decisions on the initiation of bankruptcy process or the refusal to initiate bankruptcy process in Vietnam according to Article 42 Bankruptcy Law 2014 is as follows:

- Within 30 days from the date of accepting the petition to initiate bankruptcy proceedings, the Judge must issue a decision to initiate or not initiate bankruptcy proceedings, except for the cases stipulated in Article 105 Bankruptcy Law 2014.

- The Judge issues a decision to initiate bankruptcy proceedings when the enterprise, cooperative is insolvent.

- In necessary cases, before issuing a decision to initiate bankruptcy proceedings, the Judge may summon a meeting with the participation of the petitioner for bankruptcy proceedings, the business owner, or the legal representative of the enterprise or cooperative subject to the bankruptcy petition, and related individuals and organizations to review and check the evidence proving the insolvency of the enterprise or cooperative.

- The decision to initiate bankruptcy proceedings must contain the following principal contents:

+ Date, month, year;

+ Name of the People’s Court; name and title of the Judge conducting the bankruptcy proceedings;

+ Date and number of the petition to initiate bankruptcy proceedings; name and address of the petitioner;

+ Name and address of the insolvent enterprise or cooperative;

+ Time and venue for creditors to declare their claims and the legal consequences of failing to declare.

- The People’s Court shall issue a decision not to initiate bankruptcy proceedings if it finds that the enterprise or cooperative does not fall under the cases stipulated in Clause 2, Article 42 Bankruptcy Law 2014.

In this case, the petitioner for bankruptcy proceedings is refunded the advance payment of bankruptcy costs; the demand for the insolvent enterprise or cooperative to fulfill financial obligations that were temporarily suspended according to Article 41 of the Bankruptcy Law 2014 shall be resolved.

- The decision to initiate or not initiate bankruptcy proceedings takes effect from the date of issuance.

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