Conditions for declaration of bankruptcy of companies, businesses and individuals
Bankruptcy, bankruptcy declaration is a situation where businesses and individuals operate at a loss and are no longer able to maintain. Bankruptcy Law 2014 sets out regulations on rights, obligations, benefits for businesses, creditors.
Bankruptcy, bankruptcy declaration is a situation where businesses and individuals operate at a loss and are no longer able to maintain. Bankruptcy Law 2014 sets out regulations on rights, obligations, benefits for businesses, creditors.
I. Bankruptcy, conditions for bankruptcy declaration
Bankruptcy is a situation in which an enterprise or cooperative becomes insolvent and is declared bankrupt by a People's Court (According to Clause 2, Article 4 of the Bankruptcy Law 2014). An insolvency enterprise or cooperative is an enterprise that fails to pay its debt within 03 months from the payment due date.
There are 2 cases of non-fulfillment of payment obligations: Because there are no assets to pay debts; There are properties that do not pay the debts
II. Persons with rights and obligations to file bankruptcy requests
Vietnamese law stipulates that the person with rights and obligations to file a petition for opening of bankruptcy procedures in Article 5, Chapter 1 of the Bankruptcy Law 2014:
1. Unsecured creditors and partially secured creditors may file a request for opening of bankruptcy procedures after the expiry of 03 months from the date the debt is due and the enterprise or cooperative fails to pay it. payment obligations.
2. Laborers, grassroots-level trade unions, direct-level upper-level trade unions in places where grassroots-level trade unions have not yet been established have the right to file a request for opening of bankruptcy procedures at the expiry of 3-month time limit from: fulfill the obligation to pay salaries and other debts due to the employees that the enterprises or cooperatives fail to fulfill the payment obligation.
3. The legal representative of an enterprise or cooperative is obliged to file an application for opening of bankruptcy procedures when the enterprise or cooperative is insolvent.
4. Owners of private enterprises, Chairmen of Managing Boards of joint-stock companies, Chairmen of Members' Councils of multi-member limited liability companies, owners of one-member limited liability companies. members and general partners of a partnership are obliged to file a request for opening of bankruptcy procedures when the enterprise is insolvent.
5. A shareholder or group of shareholders owning 20% or more of ordinary shares for at least 6 consecutive months has the right to file a request to open bankruptcy procedures when the joint-stock company loses its solvency. . A shareholder or group of shareholders owning less than 20% of ordinary shares for a continuous period of at least 06 months has the right to file a request to open bankruptcy procedures when the joint-stock company is insolvent in case of Article company rules.
6. Members of cooperatives or the legal representative of member cooperatives of unions of cooperatives have the right to file a request for opening of bankruptcy procedures when the cooperatives and unions of cooperatives are incapacitated pay.
III. Procedures for business bankruptcy declaration
Dai Viet Law Firm advises on the procedure for business bankruptcy declaration in accordance with the Bankruptcy Law 2014. The order of procedure implementation includes:
1. Step 1: File an application for opening of bankruptcy procedures
2. Step 2: Mediation and Acceptance of the petition for opening of bankruptcy procedures
The court receives and reviews the petition for opening bankruptcy proceedings. The court returns the form or passes it to the competent court. Notification of filing fees and advancing bankruptcy fees, requesting amendments and supplements to the application. To declare bankruptcy of enterprises or cooperatives in special cases or conciliation for cases of conciliation before opening bankruptcy procedures ...
3. Step 3: Open bankruptcy procedures
Decisions to open or not to open bankruptcy procedures and notify decisions. Determining property obligations and measures to preserve properties: Inventorying assets, making lists of creditors and making lists of debtors
4. Step 4: Creditors' meeting
Convene the first and second creditors' conference. Peak only proceeds with the bankruptcy procedure when a participant in the creditors' conference is absent. Approving resolutions of creditors' meeting: solutions to reorganize business activities, payment plans for creditors, restore business activities of enterprises, procedures for liquidation of bankruptcy assets, etc.
5. Step 5: Restoring the production and business activities of the enterprises and cooperatives
In necessary cases, the creditors' meeting shall approve the plan to restore business operations of the insolvent enterprises and cooperatives. After the enterprise or cooperative completes or fails to implement the plan, but after the expiry of the plan to resume the business operation, but still remains insolvent, the decision to suspend the operation restoration procedure shall be issued. business
6. Step 6: Making a decision to declare the enterprise or cooperative bankrupt
7. Step 7: Implementation of the Decision on bankruptcy declaration
Liquidation of bankruptcy assets. Divide the proceeds from the sale of assets to entities in the order of their division.
If you have any questions, please contact Tran Hang Notary Office / Dai Viet Limited Law Firm for specific answers.
DAI VIET LAW CO., LTD-
TRAN HUNG NOTARY OFFICE
Address: No. 28 Lieu Giai Street - Ba Dinh - Hanoi
Tel: (04) 37478888 Fax: (04) 37473966
Hot-line: 0933.668.166
Email: info@luatdaiviet.vn
Website: www.luatdaiviet.vn
Bankruptcy, bankruptcy declaration is a situation where businesses and individuals operate at a loss and are no longer able to maintain. Bankruptcy Law 2014 sets out regulations on rights, obligations, benefits for businesses, creditors.
I. Bankruptcy, conditions for bankruptcy declaration
Bankruptcy is a situation in which an enterprise or cooperative becomes insolvent and is declared bankrupt by a People's Court (According to Clause 2, Article 4 of the Bankruptcy Law 2014). An insolvency enterprise or cooperative is an enterprise that fails to pay its debt within 03 months from the payment due date.
There are 2 cases of non-fulfillment of payment obligations: Because there are no assets to pay debts; There are properties that do not pay the debts
II. Persons with rights and obligations to file bankruptcy requests
Vietnamese law stipulates that the person with rights and obligations to file a petition for opening of bankruptcy procedures in Article 5, Chapter 1 of the Bankruptcy Law 2014:
1. Unsecured creditors and partially secured creditors may file a request for opening of bankruptcy procedures after the expiry of 03 months from the date the debt is due and the enterprise or cooperative fails to pay it. payment obligations.
2. Laborers, grassroots-level trade unions, direct-level upper-level trade unions in places where grassroots-level trade unions have not yet been established have the right to file a request for opening of bankruptcy procedures at the expiry of 3-month time limit from: fulfill the obligation to pay salaries and other debts due to the employees that the enterprises or cooperatives fail to fulfill the payment obligation.
3. The legal representative of an enterprise or cooperative is obliged to file an application for opening of bankruptcy procedures when the enterprise or cooperative is insolvent.
4. Owners of private enterprises, Chairmen of Managing Boards of joint-stock companies, Chairmen of Members' Councils of multi-member limited liability companies, owners of one-member limited liability companies. members and general partners of a partnership are obliged to file a request for opening of bankruptcy procedures when the enterprise is insolvent.
5. A shareholder or group of shareholders owning 20% or more of ordinary shares for at least 6 consecutive months has the right to file a request to open bankruptcy procedures when the joint-stock company loses its solvency. . A shareholder or group of shareholders owning less than 20% of ordinary shares for a continuous period of at least 06 months has the right to file a request to open bankruptcy procedures when the joint-stock company is insolvent in case of Article company rules.
6. Members of cooperatives or the legal representative of member cooperatives of unions of cooperatives have the right to file a request for opening of bankruptcy procedures when the cooperatives and unions of cooperatives are incapacitated pay.
III. Procedures for business bankruptcy declaration
Dai Viet Law Firm advises on the procedure for business bankruptcy declaration in accordance with the Bankruptcy Law 2014. The order of procedure implementation includes:
1. Step 1: File an application for opening of bankruptcy procedures
2. Step 2: Mediation and Acceptance of the petition for opening of bankruptcy procedures
The court receives and reviews the petition for opening bankruptcy proceedings. The court returns the form or passes it to the competent court. Notification of filing fees and advancing bankruptcy fees, requesting amendments and supplements to the application. To declare bankruptcy of enterprises or cooperatives in special cases or conciliation for cases of conciliation before opening bankruptcy procedures ...
3. Step 3: Open bankruptcy procedures
Decisions to open or not to open bankruptcy procedures and notify decisions. Determining property obligations and measures to preserve properties: Inventorying assets, making lists of creditors and making lists of debtors
4. Step 4: Creditors' meeting
Convene the first and second creditors' conference. Peak only proceeds with the bankruptcy procedure when a participant in the creditors' conference is absent. Approving resolutions of creditors' meeting: solutions to reorganize business activities, payment plans for creditors, restore business activities of enterprises, procedures for liquidation of bankruptcy assets, etc.
5. Step 5: Restoring the production and business activities of the enterprises and cooperative
In necessary cases, the creditors' meeting shall approve the plan to restore business operations of the insolvent enterprises and cooperatives. After the enterprise or cooperative completes or fails to implement the plan, but after the expiry of the plan to resume the business operation, but still remains insolvent, the decision to suspend the operation restoration procedure shall be issued. business
6. Step 6: Making a decision to declare the enterprise or cooperative bankrupt
7. Step 7: Implementation of the Decision on bankruptcy declaration
Liquidation of bankruptcy assets. Divide the proceeds from the sale of assets to entities in the order of their division.
If you have any questions, please contact Tran Hang Notary Office / Dai Viet Limited Law Firm for specific answers.
DAI VIET LAW CO., LTD-
TRAN HUNG NOTARY OFFICE
Address: No. 28 Lieu Giai Street - Ba Dinh - Hanoi
Tel: (04) 37478888 Fax: (04) 37473966
Hot-line: 0933.668.166
Email: info@luatdaiviet.vn
Website: www.luatdaiviet.vn
