Regulations on requests of debtors for initiation of bankruptcy process in Vietnam

Regulations on requests of debtors for initiation of bankruptcy process in Vietnam

Pursuant to Article 26 of the Law onBankruptcy 2014, when requesting the People’s Court to initiate bankruptcy process, the creditors mentioned in Clause 1 Article 5 of this Law must make a request for the initiation of bankruptcy process.

A request for initiation of bankruptcy process must contain:

- Date

- Name of the People’s Court in charge of bankruptcy settlement;

- Name and address of the requester;

- Name and address of the enterprise or the cooperative forced to file for bankruptcy;

- The due debts

Proof of due debts must be enclosed herewith .

When advising on the selection of asset management officers and/or asset management enterprises, the request must contain the name and address of the asset management officers and/or asset management enterprises.

Regulations on requests of debtors for initiation of bankruptcy process in Vietnam (Internet image) 

Method of sending requests for the initiation of bankruptcy process in Vietnam

Pursuant to Article 30 of the Law onBankruptcy 2014, anyone wishing to request the initiation of bankruptcy process must send the application and documents to the People’s Court either

- directly;

- or by post.

The day on which the request for bankruptcy process is submitted shall be counted from the day on which the People’s Court receives the request or attested by the day on postmark.

Eligibility and liability to submit written requests for initiation of bankruptcy process in Vietnam

Pursuant to Article 5 of the Law onBankruptcy 2014, eligibility and liability to submit written requests for initiation of bankruptcy process are as follows:

- Any creditor of unsecured debts or partly-secured debts is entitled to send a written request for initiation of bankruptcy process after 03 months from the payment due date for the debts which the enterprise or cooperative does not pay..

- Any employee, internal Trade Union (or the superior Trade Union if the internal Trade Union is not established) is entitled to send a written request for initiation of bankruptcy process after 03 months from the day on which the entity have to pay salaries and other debts to the employees.

- The legal representative of each enterprise or cooperative is liable to send a written request for initiation of bankruptcy process when the entity is insolvent.

-. The owner of any private enterprise, the President of the Board of Directors of any joint-stock company, President of the Member assembly of any multi-member limited liability company, the owner of any single limited liability company or any general partner of any partnership is liability to submit a written request for initiation of bankruptcy process when the entity is insolvent.

- Any shareholder or any group of shareholders owning at least 20% of ordinary shares for at least 06 consecutive months is entitled to file a written request for initiation of bankruptcy process when the joint-stock company is insolvent. Any shareholder or any group of shareholders owning less than 20% of ordinary shares for at least 06 consecutive months is entitled to file a written request for initiation of bankruptcy process when the joint-stock company is insolvent if it is mentioned in the company’s charter.

- Any member of any cooperative or any legal representative of any cooperative which is a member of the cooperative union is entitled to file a written request for initiation of bankruptcy process when the entity is insolvent.

Mai Thanh Loi

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