Guidelines for identification, division and handling of common assets for judgment enforcement in Vietnam

Guidelines for identification, division and handling of common assets for judgment enforcement in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Guidelines for identification, division and handling of common assets for judgment enforcement in Vietnam

Guidelines for Identification, division and handling of common assets for judgment enforcement in Vietnam under Article 74 of the Law on Enforcement of Civil Judgments 2008 (amended in 2014) are as follows:

- In case of failing to identify the proportion of asset ownership or land use rights of the judgment debtor in the common assets for judgment enforcement, the enforcer shall notify the judgment debtor and co-owners of assets or land use rights so that they reach an agreement on division of common assets or request the court to settle the case according to civil procedure.

Past 30 days after receiving the notification, if no agreement is reached by the parties or their agreement violates the provisions of Article 6 of the Law on Enforcement of Civil Judgments 2008 or they cannot reach an agreement or do not request the court to settle the case: 

The enforcer shall notify the judgment creditor of his/her right to request a court to identify the proportion of asset ownership or land use rights of the judgment debtor in the common assets according to civil procedure.

Past 15 days after receiving the notification, if the judgment creditor fails to request the court to settle the case, the enforcer shall request the court to identify the proportion of asset ownership or land use rights of the judgment debtor in the common assets according to civil procedure.

The enforcer shall handle assets according to the court’s decisions.

- Distrained assets under common ownership of which ownership proportions of co-owners have been identified shall be handled as follows:

+ For dividable common assets, the enforcer shall apply coercive measures regarding the asset proportion owned by the judgment debtor;

+ For undividable common assets or in case the division considerably reduces the asset value, the enforcer may apply coercive measures regarding all assets and pay to other co-owners the value of asset proportions under their ownership.

- Co-owners have the preemptive right to buy the asset ownership proportion of the judgment debtor in the common assets.

Before the first-time sale of the asset ownership proportion in the common assets, the enforcer shall notify and determine a time limit for co-owners to buy the asset ownership proportion of the judgment debtor at determined prices within 3 months for real estate and 1 month for movables. For subsequent asset sales, the time limit is 15 days after the valid notification is made.

Within 5 working days after the time limit for preemptive right expires, if co-owners do not buy assets, the assets may be sold under Article 101 of the Law on Enforcement of Civil Judgments 2008.

2. Guidelines for settlement of disputes, requests for cancellation of papers or transactions related to assets for judgment enforcement in Vietnam

Guidelines for Settlement of disputes, requests for cancellation of papers or transactions related to assets for judgment enforcement in Vietnam under Article 75 of the Law on Enforcement of Civil Judgments 2008 (amended in 2014) are as follows:

- In case of coercive enforcement regarding assets of a judgment debtor over which a dispute arises between the judgment debtor and another person, the enforcer shall notify the involved and disputing parties of their rights to initiate a lawsuit at court or request a competent agency to settle the dispute.

Within 30 days after the valid notification is made, if involved and disputing parties initiate a lawsuit at court or request a competent agency to settle the dispute, assets shall be handled under the court decisions or decisions of competent agencies.

Within 30 days after the valid notification is made, if involved and disputing parties do not initiate a lawsuit at court or request a competent agency to settle the dispute, assets shall be handled by the enforcer for judgment enforcement under the Law on Enforcement of Civil Judgments 2008.

- If there is a ground to identify that a transaction related to assets for judgment enforcement is conducted in order to shirk the judgment execution obligation, the enforcer shall notify such to the judgment creditor for requesting the court to declare such transaction invalid or the competent agency to cancel papers related to that transaction.

Past 15 days after receiving the notification, if the judgment creditor does not request, the enforcer shall request the court to declare that transaction invalid or the competent agency to cancel papers related to that transaction.

- In case the enforcer requests the court to settle matters specified in Clause 1, Article 74 of the Law on Enforcement of Civil Judgments 2008 and Clauses 1 and 2 of Article 75 of the Law on Enforcement of Civil Judgments 2008 (amended in 2014) for judgment enforcement, he/she shall pay no court charges and fees.

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