Initiation of Bankruptcy Process

Dragon Law Firm with reputable and professional lawyers in procedure consultation on enterprise initiation of bankruptcy.

Dragon Law Firm with reputable and professional lawyers in procedure consultation on enterprise initiation of bankruptcy.

A. Competence in bankruptcy settlement of the People’s Court

1. The People’s Court of central-affiliated cities and provinces (hereinafter referred to as provincial People’s Court) has the competence in bankruptcy settlement for enterprises and cooperatives registered in the province and for one of the following cases:

a. There are overseas assets or involving entities.

b. The insolvent entity has branches and/or representative offices located in district and/or cities of various provinces;

c. The insolvent entity has real estate in district and/or cities of various provinces;

d. The provincial People’s Court takes the bankruptcy cases under the management of the People’s Court of a district/city of the province due to their complicacy.

2. The district People’s Court has the competence in bankruptcy settlement for enterprises and cooperatives of which the headquarters are located in the district.

B. Party with rights to apply

a. Creditor

b. Employee in case their enterprise or cooperative does not pay salary or other benefits

c. Owner of State enterprise

d. Shareholder of joint stock company

e. Member of partnership

C. Party with responsibility to apply:

Enterprise or cooperative in status of bankruptcy

D. Dossiers:

I. For Creditor: a request for initiation of bankruptcy process must contain:

a. Date

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

c. Name and address of the requester;

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

e. The due debts and requested process of debt settlement

f. Proof of due debts must be enclosed herewith

II. Requests for initiation of bankruptcy process of employees or representatives of Trade Unions

1. Representative for employees has been legally appointed after half of employees in the enterprise or cooperative agree by secret ballot or signatures; for enterprises and large-scale cooperatives with many subordinate units, representative of employees has been legally appointed after half of people in the affiliated units approve.

2. A request for initiation of bankruptcy process must contain:

a. Date

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

c. Name and address of the petitioner;

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

e. Total amount of outstanding salaries and other debts which are due

f. Proof of employees' salaries and other due debts must be enclosed herewith.

3. In case of appointment 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.

4. From the day of submission of the requests, the employees or the Trade Union representative shall have the rights and obligations of creditors’ according to the regulations of this Law.

III. Request for initiation of bankruptcy process of insolvent entities

1. When discovering the enterprise and cooperative in status of bankruptcy, enterprise owner or legal representative has rights to request for initiation of bankruptcy.

2. A request for initiation of bankruptcy process must contain:

a. Date

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

c. Name of the insolvent entity

d. Name and address of the requester;

e. The basis for requesting initiation of bankruptcy process

f. Request for initiation of bankruptcy need to apply at the competent Court

3. The request for initiation of bankruptcy process must be enclosed with the following documents:

a. A financial statement of the insolvent entity of the recent 03 years. In case the insolvent entity has been established less than 03 years, the financial statement shall cover all the operation time;

b. An explanation for the insolvency; A report on results of the recovering attempts of the entity, which is failed to remedy the insolvency;

c. A detailed list of assets and their locations of the entity

d. A list of creditors and debtors with their respective name, address, loans and debts which are secured, partly-secured and/or unsecured and due or not due;

e. Documents related to the establishment of the entity;

f. The results of the valuation for the remaining assets (if any)

g. Other documents required by the Court

D. Settlement period:

- Decisions on the initiation of bankruptcy process or the refusal to initiate bankruptcy process: 30 days from the date when the Court enrolls the request.

- List name of creditor, debtor: 60 days from the date when the Court make decisions on the initiation of bankruptcy

- Complaint and complaint settlement of creditors: 15 days from the date of list

- Meeting of creditors: 15 days from the date of closure of creditor list

For more detail, kindly contact to high experience lawyers in Vietnam from Dragon Law Firm at:

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