Procedures for implementation of Decisions on declaration of bankruptcy in Vietnam

Procedures for implementation of Decisions on declaration of bankruptcy in Vietnam

Pursuant to Article 120 of the Law on Bankruptcy 2014, the procedures for implementation of Decisions on declaration of bankruptcy are prescribed as follows:

- The civil execution authority shall issue the Decision on implementation and assign the bailiff to implement the Decision on declaration of bankruptcy within 05 working days from the issuance of an Decision on declaration of bankruptcy.

- After assigned by the Head of the civil execution authority, the bailiff shall:

= open an bank account held by the civil execution authority in charge of implementing the Decision on declaration of bankruptcy to send confiscated money of the insolvent entity;

= supervise the asset liquidation conducted by the asset management officer and asset management enterprise;

= enforce the asset confiscation and transfer the assets to the buyers under the regulations of the law on civil execution;

= redistribute the assets according to the Decision of declaration of bankruptcy after receiving the report of the asset management officer and asset management enterprise on the asset liquidation.

Procedures for implementation of Decisions on declaration of bankruptcy in Vietnam (Internet image) 

Regulations on sale of assets in implementing the Decisions on declaration of bankruptcy in Vietnam

Pursuant to Article 124 of the Law on Bankruptcy 2014, regulations on the sale of assets in implementing the Decisions on declaration of bankruptcy are as follows:

(1) The assets shall be sold:

- by auction;

- without auction.

(2) The movables to the value of more than VND 10 million and real estate shall be put up for auction under the regulations of the law on asset auction.

Any asset management officer and asset management enterprise can negotiate with the auctioneer within 05 days from the valuation. The asset management officer and asset management enterprise shall sign the contract for the asset auction with the auctioneer.

If the asset management officer and asset management enterprise fail to conclude the negotiation, a auctioneer shall be appointed by the bailiff to sign the contract for the asset auction.

The contract for asset auction shall be signed within 10 days from the valuation/

The movables shall be put up for auction within 30 days and the real estate shall be put up for auction within 45 days from the signing of the contract for asset auction.

(3) The asset management officer and asset management enterprise shall put the assets up for auction if:

- the assets locate at any province where there are no auctioneers at all or no auctioneers signing the contract for asset auction.

- the movables are worth from VND 2 million to VND 10 million.

The movables shall be put up for auction within 30 days and the real estate shall be put up for auction within 45 days from the valuation or the receipt of the refusal notice about the auction.

(4) The asset management officer and asset management enterprise shall sell the assets to the value of less than VND 2 million or the assets prescribed in Clause 2 Article 122 of of the Law on Bankruptcy 2014 without auction.

The assets shall be sold within 05 working days from the issuance of the Decision on the implementation of the Decision on declaration of bankruptcy or the Decision on the sale of assets.

(5) The procedures for the auction are prescribed in the regulations of the law on asset auction.

Mai Thanh Loi

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE