Table of contents:
1. What is bankruptcy?
According to the provisions of the Bankruptcy Law 2014, bankruptcy is understood as the situation of an enterprise facing financial difficulties and not fulfilling its debt payment obligations within 03 months from the payment due date, meaning the enterprise is insolvent and is declared bankrupt by the People's Court.
Thus, to be recognized as bankrupt, an enterprise must simultaneously meet both of the following conditions:
- Inability to pay;
- Declared bankrupt by the People's Court.
2. Who are the Bankruptcy Lawyers in Ho Chi Minh?
Bankruptcy lawyers in Ho Chi Minh are a team of lawyers with extensive legal experience in bankruptcy, who clearly understand the legal issues surrounding business bankruptcy, the bankruptcy process and legal consequences, helping clients have an overview and legality when filing a request to open bankruptcy procedures for a business, being a guide and accompanying clients throughout the business bankruptcy process.
3. What tasks do Bankruptcy Lawyers in Danang perform?
Depending on the demand to use the service, bankruptcy Lawyers in Ho Chi Minh will perform the following tasks:
3.1. Bankruptcy Lawyers in Ho Chi Minh consult on issues related to bankruptcy and business bankruptcy procedures
- Consulting on business bankruptcy conditions;
- Consulting on subjects who have the right and obligation to file a request to open bankruptcy procedures.
- Consulting and giving legal opinions on appealing the Court’s decision to open bankruptcy procedures;
- Consulting on debt handling methods and asset liquidation during the Court settlement process;
- Consulting and making plans for the Creditors’ Conference;
- Consulting on prohibited activities after the decision to open bankruptcy procedures, the enterprise's property obligations and plans to restore the enterprise's business operations;
- Consulting on options to ensure debt/asset recovery.
3.2. Bankruptcy Lawyers in Ho Chi Minh assist in drafting and preparing documents to resolve business bankruptcy cases
- Drafting a request to open bankruptcy procedures corresponding to each entity that has the right to request the opening of procedures such as creditors, employees, union representatives...;
- Drafting legal opinions to protect clients’ rights at Court and relevant agencies;
- Supporting in collecting and consolidating documents that clients need to provide to resolve bankruptcy case;
- Preparing and completing business bankruptcy documents in case the business wants to proactively go bankrupt at the Court.
3.3. Bankruptcy Lawyers in Ho Chi Minh represent clients to carry out legal procedures in business bankruptcy cases
- Representing clients to work with the Court and relevant agencies throughout the process of resolving the bankruptcy case;
- Representing clients in working with other units and creditors (if any) throughout the process of resolving the bankruptcy case.
4. Why do you need to retain Bankruptcy Lawyers in Ho Chi Minh?
Business bankruptcy is not a simple procedure, the resolution process includes many legal issues from the stage of filing a request to open bankruptcy procedures, holding a creditors’ conference until the stage of making a decision to declare the business bankrupt. What are the complete documents to submit to the court? What types of debt can be recovered when a business goes bankrupt? Do the business owner's personal assets have to be liquidated to pay debt?....
Faced with these legal issues, clients are confused and easily make wrong decisions. Failure to understand and flexibly apply legal regulations will cause businesses to lose costs, time and effort. Therefore, bankruptcy Lawyers in Ho Chi Minh will help you:
- Ensuring bankruptcy documents and procedures are correct in terms of content and resolution progress;
- Receiving detailed advice on regulations, risks to be faced and legal consequences of the bankruptcy plan;
- Saving time and effort when you have a lawyer representing you to submit documents, collect and copy documents at state agencies, work and communicate with partners;
- Avoiding worries when having to face directly before the court and other agencies and units when authorizing a lawyer.
5. Where can you find Bankruptcy Lawyers in Ho Chi Minh?
A professional bankruptcy lawyer, in addition to professional capacity and experience, must also have soft skills from life and business knowledge. To best protect the legitimate rights and interests of clients, Danang Bankruptcy Lawyers also pay special attention to resolving all disputes about conditions and bankruptcy procedures in the spirit of “Honour Justice – Respect Goodwill”. They will always accompany clients on every journey to resolve legal issues and conflicts of interest in the field of business bankruptcy.
You can learn more about Danang Bankruptcy Lawyers at PHONG & PARTNERS LAW FIRM SYSTEM IN Ho Chi Minh according to the following information.
PHONG & PARTNERS LAW FIRM
Phong & Partners Lawyer in Ho Chi Minh City
Add: Floor 9, K&M Building, 33 Ung Van Khiem, 25 Ward, Binh Thanh district, Ho Chi Minh City.
Tel: 0905.503.678
Email: phongpartnerslaw.hcmc@gmail.com
Phong & Partners Lawyer in Da Nang City
1. Phong & Partners Law Firm in Hai Chau - Thanh Khe
Address: 6th floor, Thanh Loi Building, 249 Nguyen Van Linh, Thanh Khe district, Da Nang.
Phone: 02363 822 678 - 0905 102 425
2. Phong & Partners Law Firm in Son Tra
Address: 01 Dong Giang, Son Tra district, Da Nang.
Phone: 0905 205 624
3. Phong & Partners Law Firm in Lien Chieu
Address: 21 Truong Van Da, Lien Chieu District, Da Nang.
Phone: 0961 283 093
4. Phong & Partners Law Firm in Ngu Hanh Son
Address: 03 Chu Cam Phong, Ngu Hanh Son District, Da Nang.
Phone: 0905 579 269
5. Phong & Partners Law Firm in Cam Le - Hoa Vang
Address: 346 Cach Mang Thang Tam, Cam Le District, Da Nang.
Phone: 0901 955 099
Email: phongpartnerslaw@gmail.com
Website: https://phong-partners.com
Fanpage: https://www.facebook.com/phongpartnerslaw
https://www.facebook.com/luatsugioinguhanhson
https://www.facebook.com/luatsusontra
https://www.facebook.com/luatsuquanlienchieu
https://www.facebook.com/LuatsuCamLe
6. FAQ related to Bankruptcy Lawyer
(1) Who has the right and obligation to file for bankruptcy?
Persons with the right and obligation to file for bankruptcy include:
- Unsecured creditors and partially secured creditors have the right to file a request to open bankruptcy proceedings at the end of 03 months from the due date of the debt and the enterprise fails to fulfill its payment obligations;
- Employees, trade unions;
- Legal representative of the enterprise;
- Owner of a private enterprise, Chairman of the Board of Directors of a joint stock company, Chairman of the Board of Members of a limited liability company with two or more members...;
- Shareholders or groups of shareholders owning 20% or more of common shares for at least 6 consecutive months have the right to file a request to open bankruptcy procedures when the joint stock company becomes insolvent...
(2) Is bankruptcy a way to collect bad debts?
Bankruptcy can be considered a way to collect bad debts because:
In the process of conducting business activities, businesses conducting exchange activities, buying and selling goods, and providing services have appeared in the form of delayed purchasing, installment payments or borrowing with commitments to repay pay over time.
In fact, when a business cannot pay its due debt to creditors within the prescribed time, unsecured creditors and partially secured creditors have the right to apply to a competent court to request the opening of bankruptcy proceedings for that enterprise. The essence of filing a request to open bankruptcy proceedings for a creditor's indebted enterprise is that the law allows creditors to ask the court to collect debt on their behalf when they cannot collect the debt themselves.
In addition, debt collection and debt payment in bankruptcy are carried out through an intermediary agency, which is the court. This is different from the civil debt collection procedure where there is only the creditor and the debtor, meaning whoever owes the debt will claim it. The court, as an intermediary agency with jurisdiction to resolve bankruptcy, will represent creditors to collect debts from debtors, and represent debtors to repay debts to creditors.
Bankruptcy proceedings can therefore be seen as a way for unsecured creditors and partially secured creditors to collect bad debts from insolvent businesses.
(3) 5 notes when applying for bankruptcy in Ho Chi Minh
1. Which agency has the authority to resolve bankruptcy?
District People's Court has the authority to resolve bankruptcy for enterprises headquartered in districts, towns, and cities in that province.
Provincial People's Court has authority to resolve bankruptcy for enterprises registered in that province and falling into one of the following cases:
+ Has assets abroad or is a person participating in bankruptcy proceedings abroad;
+ Enterprises have branches and representative offices in many districts, towns and cities in different provinces;
+ Enterprises have real estate in many districts, towns, and cities in different provinces;
+ Taken up by the Provincial People's Court to resolve due to the complex nature of the case.
2. Conditions for company bankruptcy?
To be recognized as bankrupt, an enterprise must simultaneously meet both of the following conditions:
- Inability to pay;
- Declared bankrupt by the People's Court.
In particular, an insolvent enterprise is an enterprise that does not fulfill its debt payment obligations within 03 months from the payment due date.
Failure to fulfill payment obligations includes 02 cases:
Case 1: There are no assets to pay debts;
Case 2: Having assets but not paying debts.
3. What does a bankruptcy file include?
+ The applicant is a creditor:
A petition to open bankruptcy proceedings must have the following main contents:
• Date, month, year;
• Name of the People's Court with authority to resolve bankruptcy;
• Name and address of the applicant;
• Name and address of the enterprise or cooperative required to open bankruptcy procedures;
• Debt due.
• The application must have evidence to prove the debt is due
+ The applicant is an employee
A petition to open bankruptcy proceedings must have the following main contents:
• Date, month, year;
• Name of the People's Court with authority to resolve bankruptcy;
• Name and address of the applicant;
• Name and address of the enterprise or cooperative requested to open bankruptcy procedures;
• Total amount of wages and other debts that are due but the enterprise or cooperative does not pay the employee.
• The application must have evidence to prove salary and other debts due.
+ The applicant is a business or cooperative that has fallen into bankruptcy
A petition to open bankruptcy proceedings must have the following main contents:
• Date, month, year;
• Name of the People's Court with authority to resolve bankruptcy;
• Name and address of the enterprise or cooperative;
• Name and address of the applicant;
• Basis for request to open bankruptcy procedure.
The application to open bankruptcy procedures must be accompanied by the following papers and documents:
• Financial statements of enterprises and cooperatives for the most recent 3 years. In case the enterprise or cooperative was established and operated for less than 03 years, the financial report of the enterprise or cooperative for the entire period of operation shall be attached;
• An explanation of the cause of insolvency; Report on the results of implementing measures to restore businesses and cooperatives but still cannot overcome the insolvency situation;
• A detailed list of assets and locations of assets of the enterprise or cooperative;
• List of creditors, list of debtors, which must clearly state the names and addresses of creditors, debtors, debts, secured loans, unsecured loans, and single secured loans due or not yet due;
• Papers and documents related to the establishment of enterprises and cooperatives;
• Results of valuation and valuation of remaining asset value (if any).
4. Method of filing a request to open bankruptcy proceedings?
A person requesting to open bankruptcy procedures must submit the application and accompanying documents and evidence to the competent People's Court by one of the following methods:
+ Submit directly to the People's Court;
+ Send it to the People's Court by post
The date of filing a request to open bankruptcy proceedings is calculated from the date the People's Court receives the request or the date the postmark at the place of delivery.
5. Payment priority order when the enterprise goes bankrupt?
The order of asset division when the Judge issues a decision to declare bankruptcy is as follows:
+ Bankruptcy costs;
+ Salary arrears, severance pay, social insurance, health insurance for employees, and other benefits according to the labor contract and signed collective labor agreement;
+ Debts arising after opening bankruptcy procedures for the purpose of restoring the enterprise's business operations;
+ Financial obligations to the State; Unsecured debt must be paid to creditors in the creditor list; Secured debt has not been paid because the value of the secured assets is not enough to pay the debt;
+ Members of cooperatives; Private business owner; Owner of a one-member limited liability company; Member of a limited liability company with two or more members, shareholder of a joint stock company; Member of the Partnership Company.
In case the asset value is not enough to pay the prescribed expenses, each subject in the same order of priority will be paid according to the percentage corresponding to the debt amount.
(4) Bankruptcy and dissolution, what are the differences?
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PHONG & PARTNERS LAW FIRM
Phong & Partners Lawyer in Ho Chi Minh City
Add: Floor 9, K&M Building, 33 Ung Van Khiem, 25 Ward, Binh Thanh district, Ho Chi Minh City.
Tel: 0905.503.678
Email: phongpartnerslaw.hcmc@gmail.com
Phong & Partners Lawyer in Da Nang City
1. Phong & Partners Law Firm in Hai Chau - Thanh Khe
Address: 6th floor, Thanh Loi Building, 249 Nguyen Van Linh, Thanh Khe district, Da Nang.
Phone: 02363 822 678 - 0905 102 425
2. Phong & Partners Law Firm in Son Tra
Address: 01 Dong Giang, Son Tra district, Da Nang.
Phone: 0905 205 624
3. Phong & Partners Law Firm in Lien Chieu
Address: 21 Truong Van Da, Lien Chieu District, Da Nang.
Phone: 0961 283 093
4. Phong & Partners Law Firm in Ngu Hanh Son
Address: 03 Chu Cam Phong, Ngu Hanh Son District, Da Nang.
Phone: 0905 579 269
5. Phong & Partners Law Firm in Cam Le - Hoa Vang
Address: 346 Cach Mang Thang Tam, Cam Le District, Da Nang.
Phone: 0901 955 099
Email: phongpartnerslaw@gmail.com
Website: https://phong-partners.com
Fanpage: https://www.facebook.com/phongpartnerslaw
https://www.facebook.com/luatsugioinguhanhson
https://www.facebook.com/luatsusontra
https://www.facebook.com/luatsuquanlienchieu
https://www.facebook.com/LuatsuCamLe
