Law on Business Bankruptcy

Legal+document%3a+LPSDN+*+*%2fDate%3a%2f*+12%2f30%2f93+*+*%2fNumber%3a%2f*LPSDN+*+*%2fName+of+Document%3a%2f*+Law+On+Business+Bankruptcy+NATIONAL+ASSEMBLY+SOCIALIST+REPUBLIC+OF+VIETNAM%0d%0a%0d%0aIndependence-Freedom-Happiness+----------------------LAW+ON+BUSINESS+BANKRUPTCY+In+order+to+protect+the+legal+rights+and+interests+of+the+creditors%2c+business+debtors+and+related+persons%2c+determine+the+responsibilities+of+the+business+debtors+in+business+bankruptcy%2c+contribute+in+the+effective+and+orderly+operation+of+business+and+preserve+social+discipline%3b+Pursuant+to+article+84+of+the+1992+Constitution+of+the+Socialist+Republic+of+Vietnam%3b+This+law+contains+provisions+regulating+business+bankruptcy.+CHAPTER+I+General+Provisions+Article+1+This+law+shall+be+applicable+to+businesses+of+all+forms+of+ownership+which+are+established+and+operated+under+the+law+of+the+Socialist+Republic+of+Vietnam+at+the+time+of+bankruptcy.+The+government+provides+detailed+provisions+for+the+implementation+of+this+law+in+respect+of+businesses+which+directly+serve+the+national+defense%2c+provides+securities+and+important+public+services.+Article+2+A+bankrupted+business+means+a+business+which+still+faces+financial+difficulties+or+losses+in+its+operation+and+is+unable+to+pay+its+debts+which+are+due+and+payable+even+after+it+has+exhausted+necessary+financial+measures+in+respect+of+its+business.+Article+3+In+this+law%2c+the+following+terms+shall+have+the+meanings+ascribed+to+them+hereunder%3a+1.Secured+creditor+means+a+creditor+holding+a+security+over+the+property+of+the+debtor+for+a+debt+due+to+him+from+the+debtor.%0d%0a%0d%0a%0c2.Partly+secured+creditor+means+a+creditor+holding+a+security+over+the+property+of+the+debtor+which+is+less+in+value+than+the+debt+due+to+him+from+the+debtor.+3.Unsecured+creditor+means+a+creditor+who+is+not+holding+a+security+over+the+property+of+the+debtor+for+a+debt+due+to+him+from+the+debtor.+4.Legal+representative+of+a+business+means+a+person+who+is+vested+with+the+authority+by+the+owner+of+the+business+to+represent+the+business+in+accordance+with+the+law.+Article+4+1.The+People's+Court+of+the+provinces+and+cities+under+central+authority+(hereinafter+referred+to+as+the+Court)+and+the+People's+Supreme+Court+shall+be+the+bodies+vested+with+the+jurisdiction+to+hear+and+declare+business+bankruptcy.+2.The+Chamber+of+Execution+of+the+Department+of+Justice+and+the+General+Department+of+Management+and+Execution+of+Civil+Judgments+of+the+Ministry+of+Justice+are+the+bodies+vested+with+the+jurisdiction+to+implement+the+court's+decision+to+declare+business+bankruptcy.+Article+5+The+People's+Inspection+Institution+shall+act+in+accordance+with+the+law+in+the+determination+of+business+bankruptcy.+Article+6+The+voluntary+conciliation+between+the+creditors+and+the+business+debtors%2c+the+matter+of+security+or+re-purchases+of+the+debts+of+the+business+involving+in+bankruptcy+shall+be+heard+in+priority+before+the+date+the+court+issues+a+decision+to+proceed+with+a+bankruptcy+petition.+CHAPTER+II+Procedures+for+the+Application+and+Petition+Requesting+the+Declaration+of+Business+Bankruptcy+Article+7+1.If+within+thirty+(30)+days+upon+the+receipt+of+a+payment+of+debt+notice%2c+the+debtor+still+has+not+complied+with+the+notice+then+the+unsecured+or+partly+secured+creditor+shall+have+the+right+to+lodge+a+petition+at+the+court+where+its+main+business+office+is+located+requesting+the+declaration+of+business+bankruptcy+in+respect+of+the+debtor's+business.+2.A+business+bankruptcy+petition+shall+clearly+specify%3a+(a)Name+and+address+of+the+applicant.+(b)Name+and+address+of+the+main+office+of+the+business+sought+to+be+declared+bankrupt.+3.The+petition+must+be+accompanied+by+a+copy+of+the+payment+of+debt+notice%2c+relevant+papers+and+documents+evidencing+the+business's+inability+to+pay+its+debts+which+are+due+and+payable.%0d%0a%0d%0a%0c4.The+applicant+must+pay+a+fee+in+advance+in+accordance+with+the+law.+Article+8+In+cases+where+the+business+employer+has+been+unable+to+pay+wages+for+its+laborers+for+three+consecutive+months%2c+the+Union's+representative+or+the+labourer's+representative+(where+a+union+organization+has+not+been+established)+shall+have+the+right+to+lodge+a+petition+at+the+court+where+the+main+office+of+the+business+is+located+requesting+the+declaration+of+business+bankruptcy+with+respect+to+the+business+of+the+employer.+After+lodging+the+petition%2c+the+Union's+representative+or+the+labourer's+representative+(where+a+Union+organization+has+not+been+established)+shall+be+deemed+to+be+the+creditor+and+shall+not+be+compelled+to+pay+a+fee+in+advance+as+required+by+point+4+of+article+7+of+this+law.+Article+9+1.In+cases+where+after+the+application+of+all+appropriate+measures+to+overcome+financial+difficulties+and+in+order+to+pay+its+debts+which+are+due+and+payable+including+the+delaying+of+payments+of+debts+and+the+business+is+still+unable+to+pay+its+debts+which+are+due+and+payable+then+the+owner+or+the+legal+representative+of+the+business+must+lodge+a+petition+at+the+court+where+its+main+office+is+located+requesting+the+declaration+of+business+bankruptcy+with+respect+to+its+business.+2.A+bankruptcy+petition+must+clearly+specify%3a+(a)name+and+address+of+the+main+office+of+the+business%2c+name+of+the+owner+or+name+of+the+legal+representative+of+the+business%3b+(b)the+measures+which+have+been+taken+by+the+business+to+overcome+its+difficulties+but+which+have+not+successfully+cured+the+business's+inability+to+pay+its+debts+which+are+due+and+payable%3b+(c)the+petition+shall+be+accompanied+by%3a+a+list+of+all+creditors%3b+the+amount+of+money+owed+to+each+creditor%3b+addresses+of+the+creditors%3b%0d%0a%0d%0a-+a+report+on+the+responsibilities+of+the+director+and+members+of+the+Board+of+Management+with+respect+to+the+business's+inability+to+pay+its+debts+which+are+due+and+payable%3b+-+a+report+on+the+circumstances+of+the+business+six+months+prior+to+its+inability+to+pay+its+debts+which+are+due+and+payable%3b+-+a+summing+up+report+on+the+financial+year+of+the+last+two+years.+If+the+business+has+been+operating+for+less+than+two+years+then+a+summing+up+financial+report+on+the+whole+period+of+its+operation%3b+related+accounting+files.%0d%0a%0d%0a3.The+applicant+of+a+business+bankruptcy+petition+shall+be+liable+to%0d%0a%0d%0a%0cpay+a+fee+in+advance+in+accordance+with+the+law.+Article+10+In+the+resolving+of+disputes+relating+to+businesses%2c+if+the+court+discovers+that+a+business+may+be+involved+in+bankruptcy+it+shall+notify+the+creditors+and+owner+of+the+business+of+such+matter+so+that+they+may+lodge+a+bankruptcy+petition+against+the+business.+Article+11+The+applicant+of+a+bankruptcy+petition+shall+be+responsible+for+the+contents+of+the+application+and+attached+documents+and+information.+The+owner+or+the+legal+representative+of+the+business+and+the+applicant+of+a+bankruptcy+petition+shall+have+the+obligation+to+supply+adequate+evidence+and+necessary+information+as+requested+by+the+court+in+the+process+of+a+bankruptcy+proceeding+and+shall+be+responsible+for+the+accuracy+of+such+evidence+and+information.+Article+12+The+court+where+the+bankruptcy+petition+is+lodged+shall+record+each+petition+in+its+book+and+issue+the+applicant+with+a+notification+of+the+receipt+of+his%2fher+petition+and+attached+documents.+Within+seven+days+upon+the+receipt+of+a+bankruptcy+petition%2c+the+court+shall+notify+the+business+against+which+the+petition+is+lodged+of+such+matter+in+writing.+The+notification+shall+include+a+copy+of+the+petition+and+attached+documents.+Within+ten+(10)+days+upon+the+receipt+of+the+above-mentioned+notification%2c+the+business+against+which+the+bankruptcy+petition+is+lodged+shall+forward+the+court+a+report+on+its+ability+to+pay+debts.+In+case%2c+where+the+business+is+unable+to+pay+its+debts+which+are+due+and+payable%2c+it+shall+forward+the+court+the+reports+and+information+as+stipulated+under+point+(b)+and+(c)+of+part+2+of+article+9+of+this+law.+Article+13+Within+thirty+(30)+days+upon+the+receipt+of+a+bankruptcy+petition%2c+the+Chief+Justice+of+the+Economic+Court+of+the+People's+Court+of+provinces+and+cities+under+central+authority+(hereinafter+referred+to+as+the+provincial+Economic+Court)+shall+consider+the+petition+together+with+related+documents+and+information.+If+it+is+considered+that+there+is+no+sufficient+evidence+against+the+business+the+court+shall+decide+not+to+proceed+with+the+bankruptcy+petition.+Such+decision+must+clearly+specify+the+reasons+upon+which+the+decision+is+made+and+shall+be+notified+to+the+applicant+of+the+petition+and+the+business+debtor.+Within+fifteen+(15)+days+upon+the+receipt+of+the+decision+of+the+Chief+Justice+of+the+provincial+Economic+Court%2c+the+applicant+of+the+petition+and+the+business+debtor+shall+have+the+right+to+appeal+against+the+decision+to+the+Presiding+Justice+of+the+provincial+People's+Court.+Within+seven+days+upon+the+receipt+of+the+complaint+against+the+decision+of+the+Chief+Justice+of+the+provincial+Economic+Court+the+Presiding+Justice+of+the+provincial+People's+Court+shall+make+one+of+the+following+decisions%3a%0d%0a%0d%0a%0c1.To+affirm+the+decision+of+the+Chief+Justice+of+the+provincial+Economic+Court.+2.To+set+aside+the+decision+of+the+Chief+Justice+of+the+provincial+Economic+Court+and+order+that+the+decision+be+reconsidered.+Within+seven+days+from+the+date+of+the+Presiding+Justice+of+the+provincial+People's+Court+made+the+above+order%2c+the+Chief+Justice+of+the+provincial+Economic+Court+must+issue+a+new+decision.+Such+decision+must+be+notified+to+the+Presiding+Justice+of+the+provincial+People's+Court+and+the+parties+involved.+If+within+fifteen+(15)+days+upon+the+receipt+of+the+new+decision+of+the+Chief+Justice+of+the+Economic+Court+the+parties+involved+still+wish+to+lodge+a+further+complaint+then+within+the+seven+days%2c+the+Presiding+Justice+of+the+provincial+People's+Court+shall+consider+and+determine+the+complaint.+This+final+decision+by+the+Presiding+Justice+of+the+provincial+People's+Court+shall+be+of+full+force+and+effect.+Article+14+The+fee+level+for+a+business+bankruptcy+proceeding+shall+be+determined+by+the+court+in+accordance+with+the+Law+on+Fees.+CHAPTER+III+I.+Procedures+for+Bankruptcy+a+Petition+Decision+to+proceed+with+a+bankruptcy+petition+Article+15+Within+thirty+(30)+days+upon+the+receipt+of+a+bankruptcy+petition+or+after+seven+days+from+the+date+the+Chief+Justice+of+the+provincial+People's+Court+made+a+decision+pursuant+to+part+2+of+article+13+of+this+law%2c+if+it+is+considered+that+there+is+sufficient+evidence%2c+the+Chief+Justice+of+the+Economic+Court+shall+decide+to+proceed+with+the+bankruptcy+petition.+This+decision+shall+clearly+specify+the+reasons+upon+which+the+decision+to+proceed+with+the+bankruptcy+petition+is+reached%2c+the+time+at+which+the+business'+debts+are+prohibited+from+being+dealt+with%2c+name+of+the+judge+responsible+for+the+bankruptcy+proceeding+and+names+of+the+officers+appointed+to+the+Property+Management+Team.+Depending+on+the+nature+of+each+matter%2c+the+Chief+Justice+of+the+provincial+Economic+Court+shall+appoint+a+judge+or+a+team+of+three+judges+(hereinafter+referred+to+as+the+Judge)+and+a+Property+Management+Team+to+deal+with+the+bankruptcy+proceeding.+In+cases+where+a+team+of+three+judges+are+appointed+to+the+proceeding+then+one+particular+judge+will+be+selected+as+the+responsible+judge.+The+Property+Management+Team+shall+consist+of%3a+-+the+officers+of+the+provincial+Economic+Court%3b+-+the+executive+officer+of+the+Chamber+of+Execution+of+the+Department+of+Justice%3b+-+the+creditor's+representative%3b%0d%0a%0d%0a%0c-+the+business+debtor's+representative%3b+-+the+Union's+representative+or+the+labourer's+representative+(in+cases+where+no+Union+organization+has+been+established)%3b+and+-+experts+from+financial+institutions%2c+provincial+banks+and+other+specialized+industries.+The+Property+Management+Team+shall+be+led+by+an+officer+of+the+provincial+Economic+Court.+The+Presiding+Justice+of+the+People's+Supreme+Court+shall+provide+regulations+on+the+working+system+of+the+team+of+three+judges+and+the+government+shall+provide+regulations+on+the+organization+and+operation+of+the+Property+Management+Team+after+reaching+mutual+agreement+with+the+People's+Supreme+Court.+The+decision+to+proceed+with+a+bankruptcy+petition+shall+be+published+in+the+local+newspaper+where+the+main+office+of+the+business+against+which+the+petition+is+lodged+is+located+and+in+the+Daily+Central+newspaper+in+three+consecutive+issues.+Article+16+1.The+Judge+hearing+a+bankruptcy+proceeding+shall+have+the+following+duties+and+powers%3a+(a)To+collect+documents+and+evidence+enabling+the+opening+of+a+file+in+respect+of+a+bankruptcy+petition%3b+(b)To+supervise+and+inspect+the+operation+of+the+members+of+the+Property+Management+Team%3b+(c)In+necessary+cases+to+determine+the+application+of+temporary+emergency+measures+in+accordance+with+the+law+in+order+to+protect+the+property+of+the+business+debtor%3b+(d)To+organize+and+preside+over+the+creditors'+conference%3b+(e)To+make+determination+on+the+temporary+suspension+or+the+termination+of+a+bankruptcy+proceeding%3b+(f)To+declare+business+bankruptcy.+2.+During+the+process+of+a+business+bankruptcy+proceeding+if+the+court+discovers+a+sign+of+unlawful+breach+on+the+part+of+the+business+debtor%2c+the+Judge+shall+furnish+the+People's+Inspection+Institution+with+relevant+documents+for+the+consideration+as+to+whether+or+not+a+criminal+proceeding+should+be+initiated+against+the+business+debtor.+3.+The+Judge+shall+be+responsible+before+the+Presiding+Justice+of+the+provincial+People's+Court+in+the+implementation+of+his+or+her+duties+and+powers.+Article+17+The+Property+Management+Team+shall+have+the+following+duties+and+powers%3a+1.To+make+up+a+list+of+the+property+of+the+business+in+debt%3b%0d%0a%0d%0a%0c2.To+supervise+and+inspect+the+management+of+the+property+of+the+business.+In+necessary+cases%2c+to+propose+to+the+Judge+the+application+of+temporary+emergency+measures+in+order+to+protect+the+remaining+property+of+the+business%3b+3.To+gather+a+list+of+all+creditors+and+the+amount+of+money+owed+to+each+creditor.+The+Property+Management+Team+shall+be+responsible+before+the+Judge+in+the+implementation+of+their+duties+and+powers.+Article+18+1.During+the+process+of+a+bankruptcy+proceeding%2c+the+Director+and+the+members+of+the+Board+of+Management+of+the+business+in+debt+shall+still+bear+the+responsibility+in+respect+of+the+trading+result+of+the+business.+Every+business+activity+of+the+business+shall+continue+as+usual+but+it+shall+be+subject+to+the+supervision+and+inspection+of+the+Judge+and+the+Property+Management+Team.+2.Upon+the+receipt+of+the+court's+decision+to+proceed+with+a+bankruptcy+petition%2c+the+business+against+which+the+petition+is+lodged+shall+be+prohibited+from+doing+the+following%3a+(a)To+conceal+and+disperse+the+property+of+the+business%3b+(b)To+mortgage%2c+pledge%2c+assign+and+sell+the+property+of+the+business+or+to+discharge+secured+debts+without+written+consent+from+the+Judge%3b+(c)To+settle+any+unsecured+debts+of+the+business.+Any+debt+which+results+from+the+operation+of+the+business+after+the+court's+decision+to+proceed+with+a+bankruptcy+proceeding+against+the+business+shall+be+settled+in+accordance+with+the+provisions+of+article+23+of+this+law.+(d)To+abandon+or+reduce+its+right+to+demand+the+debts+owed+to+it%3b+(e)To+create+security+over+the+debts+which+were+not+previously+secured%3b+(f)To+sell+or+convert+its+shares+or+to+assign+the+ownership+of+the+property+of+the+business.+Article+19+Property+of+a+business+shall+consist+of+all+properties+which+are+owned+or+managed+by+the+business+(with+respect+to+the+business+of+the+State)%2c+within+which+there+are%3a+1.Fixed+assets+and+current+assets+of+the+business%3b+2.Money+or+assets+contributed+to+the+capital+of+the+business%2c+joint+venture%2c+business+association+with+individuals%2c+other+businesses+or+organizations%3b+3.Money+or+assets+of+the+business+which+are+currently+being+borrowed+or+possessed+by+other+individuals+and+business+organizations%3b+4.Properties+which+are+being+leased+or+loaned+by+the+business%3b+5.All+property+rights.%0d%0a%0d%0a%0cThe+property+of+a+private+business+shall+consist+of+all+properties+belonging+to+the+owner+of+the+business+which+are+not+directly+used+in+the+operation+of+the+business.+Article+20+After+the+court's+decision+to+proceed+with+a+bankruptcy+petition%2c+the+Judge+shall+request+the+owner+or+the+legal+representative+of+the+business+against+which+the+bankruptcy+petition+is+lodged+to+propose+on+the+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business.+The+time+limit+for+the+re-organization+of+the+operation+of+the+business+shall+be+determined+by+the+creditors'+conference+but+it+shall+not+exceed+two+years+from+the+date+the+creditors'+conference+adopted+the+proposed+conciliation+measures.+The+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+shall+consist+of+the+detailed+methods%2c+plans+and+time+limit+on+the+payment+of+debts+to+creditors+and+salaries+to+the+laborers.+The+proposed+conciliation+measures+and+solutions+for+the+organization+of+the+operation+of+the+business+shall+be+forwarded+to+the+Judge+within+sixty+(60)+days+upon+his+or+her+request.+At+the+end+of+this+time+limit%2c+of+no+proposed+conciliation+measures+have+been+forwarded+to+the+Judge+he+or+she+shall+determine+to+declare+business+bankruptcy+and+organize+a+creditors'+conference+to+discuss+the+arrangement+on+the+distribution+of+the+remaining+assets+of+the+business.+Article+21+Within+sixty+(60)+days+from+the+first+date+the+court's+decision+to+proceed+with+a+bankruptcy+petition+was+published+in+the+local+newspaper+and+the+Daily+Central+newspaper%2c+all+creditors+shall+forward+the+court+with+a+payment+of+debt+notice.+The+notice+shall+clearly+specify+the+amount+of+debt+which+are+payable+by+the+business+debtor%3b+ascertain+due+and+undue+debts%2c+secured+and+unsecured+debts+and+shall+be+accompanied+by+documents+and+evidence+proving+the+amount+of+debt+owed.+Article+22+Within+fifteen+(15)+days+from+the+date+the+time+limit+for+a+payment+of+debt+notice+has+expired%2c+the+Property+Management+Team+shall+complete+a+list+of+creditors+and+the+amount+of+debt+owed+to+each+one+(herein+after+referred+to+as+the+list+of+creditors).+Such+list+of+creditors+shall+clearly+specify+the+amount+of+money+owed+to+each+creditor+and+ascertain+secured+and+unsecured+debts%2c+due+and+undue+debts+and+shall+be+publicly+posted+at+the+provincial+Court%2c+the+main+office+and+the+branches+of+the+business+within+ten+(10)+days.+Within+this+time+limit%2c+the+creditors+and+the+business+debtor+shall+have+the+right+to+lodge+a+complaint+to+the+Judge+against+the+list+of+the+creditors.+The+Judge+shall+consider+the+complaint+and+if+there+is+evidence+of+errors+he+or+she+shall+make+appropriate+amendments+to+the+list.+At+the+end+of+this+time+limit+the+Property+Management+Team+shall+close+the+list+of+creditors+and+the+creditors+who+failed+to+send+a+payment+of+debt+notice+to+the+court+are+deemed+to+have+lost+their+rights+to+participate+in+the+creditors'+conference.+Article+23%0d%0a%0d%0a%0cAs+from+the+point+of+time+there+all+debts+are+prohibited+from+being+settled%2c+the+business+shall+not+be+liable+to+pay+interests+on+the+debts.+All+debts+which+are+yet+to+be+due+shall+be+deemed+to+be+due+but+interests+shall+not+be+calculated+in+respect+of+the+period+of+which+the+debts+are+yet+to+be+due.+During+a+bankruptcy+proceeding%2c+new+debts+which+result+from+the+operation+of+the+business+and+salary+to+the+laborers+of+the+business+shall+be+settled+under+the+supervision+of+the+Judge.+II.+The+Creditors'+Conference%0d%0a%0d%0aArticle+24+The+creditors'+conference+shall+have+the+following+duties+and+powers%3a+1.To+consider+and+adopt+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business%3b+2.To+discuss+and+propose+to+the+Judge+on+the+distribution+of+the+remaining+assets+of+the+business+if+there+has+been+no+conciliation+measures+put+forward+by+the+business+debtor+or+where+the+proposed+conciliation+was+put+forward+by+the+business+debtor+it+was+not+adopted+by+the+creditors'+conference.+Article+25+Individuals%2c+businesses+and+organizations+whose+name+appeared+on+the+list+of+creditors+are+the+members+of+the+creditors'+conference.+A+creditor+may+authorize+another+person+to+attend+the+creditors'+conference+on+his+behalf+in+writing.+The+duly+authorized+person+shall+have+same+rights+and+obligations+as+the+creditor.+Only+unsecured+and+partly+secured+creditors+have+the+right+to+vote+at+the+creditors'+conference.+The+Union's+representative+or+the+labourer's+representative+(where+no+Union+organization+has+been+established)+shall+have+the+right+to+attend+the+creditors'+conference+but+he+or+she+shall+have+no+voting+right+except+where+the+circumstances+provided+for+under+article+8+of+this+law+applies.+Article+26+The+guarantor+of+the+business+debtor+after+payment+of+debt+on+behalf+of+the+business+debtor+shall+become+an+unsecured+creditor+of+the+business.+He+or+she+shall+have+the+same+rights+and+obligations+as+other+unsecured+creditors%2c+shall+be+able+to+attend+the+creditors'+conference+and+shall+have+a+right+in+the+distribution+of+the+value+of+the+remaining+assets+of+the+bankrupted+business+in+accordance+with+a+rate+equivalent+to+the+amount+of+debt+paid+to+the+creditors+of+the+business+by+the+guarantor.+The+creditors+whose+debts+have+been+partly+settled+by+the+guarantor+of+the+business+shall+have+the+right+to+participate+in+the+distribution+of+the+value+of+the+remaining+assets+of+the+business+in+accordance+with+a+rate+equivalent+to+the+amount+of+debt+still+owed+to+the+creditors.%0d%0a%0d%0a%0cArticle+27+Within+thirty+(30)+days+from+the+date+the+list+of+creditors+is+closed+the+Judge+shall+convene+and+preside+over+the+creditors'+conference.+Notice+of+the+creditors'+conference+must+be+sent+to+the+members+and+the+participants+of+the+conference+at+least+fifteen+(15)+days+before+the+opening+of+the+conference.+The+notice+of+the+creditors'+conference+shall+be+accompanied+by+a+copy+of+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business.+Article+28+The+owner+or+the+legal+representative+of+the+business+must+be+present+at+the+creditors'+conference+to+explain+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+and+to+respond+to+the+matters+put+forward+at+the+conference.+In+cases+where+the+owner+or+the+legal+representative+of+the+business+are+unable+to+attend+the+creditors'+conference+for+legitimate+reasons%2c+he+or+she+must+authorize+another+person+to+attend+the+conference+on+his%2fher+behalf+in+writing.+The+duly+authorized+person+shall+have+the+same+rights+and+obligations+as+the+owner+or+the+legal+representative+of+the+business.+In+case+where+the+owner+of+a+private+business+is+dead+his%2fher+legal+successor+shall+attend+the+creditors'+conference+on+his%2fher+behalf.+Article+29+A+creditors'+conference+shall+only+be+valid+if+more+than+half+of+the+number+of+creditors+representing+at+least+two+third+(2%2f3)+of+the+total+amount+of+the+unsecured+debts+are+present+at+the+conference.+A+record+of+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+shall+only+be+valid+if+it+is+adopted+by+more+than+half+of+the+number+of+creditors+representing+at+least+two+third+(2%2f3)+of+the+total+amount+of+the+unsecured+debts.+Such+record+shall+clearly+specify+the+matters+which+have+been+agreed+upon+and+shall+bear+the+signatures+of+the+Judge+and+the+creditors+present+at+the+conference.+Pursuant+to+the+record+of+conciliation%2c+the+Judge+shall+make+determination+on+the+temporary+suspension+of+the+bankruptcy+proceeding.+All+agreements+which+are+the+subject+of+the+record+of+conciliation+shall+be+binding+on+all+creditors+and+the+business+debtor.+Article+30+A+creditors'+conference+may+be+postponed+once+if%3a+There+is+less+than+half+of+the+number+of+creditors+representing+less+than+two+thirds+(2%2f3)+of+the+total+amount+of+unsecured+debts+are+present+at+the+conference%3b+The+majority+of+the+creditors+present+at+the+conference+vote+in+favor+of+postponing+the+conference.+Article+31+1.Within+thirty+(30)+days+from+the+date+the+creditors'+conference+is%0d%0a%0d%0a%0cpostponed%2c+the+Judge+must+reconvene+and+preside+over+the+creditors'+conference.+Notice+of+the+conference+shall+be+published+once+in+the+local+newspaper+and+the+Daily+Central+newspaper+and+shall+be+sent+to+the+members+and+the+participants+of+the+conference+at+least+fifteen+(15)+days+before+the+opening+of+the+conference.+This+conference+shall+only+be+valid+if+more+than+one+half+of+the+number+of+creditors+representing+at+least+two+thirds+(2%2f3)+of+the+total+amount+of+the+unsecured+debts+are+present.+The+decision+to+adopt+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+at+the+conference+shall+be+legally+valid+if+it+is+approved+by+a+number+of+creditors+present+at+the+conference+who+represent+at+least+two+thirds+(2%2f3)+of+the+total+amount+of+the+unsecured+debts.+All+agreements+which+are+the+subject+of+the+record+of+conciliation+of+the+conference+shall+be+binding+on+all+creditors+and+the+business+debtor.+2.If+a+creditors'+conference+is+not+valid+due+to+the+attendance+of+less+than+the+number+of+creditors+as+required+by+point+1+of+this+article+the+judge+shall+decide+to+suspend+the+bankruptcy+proceeding+and+such+decision+shall+be+published+in+the+local+newspaper+and+the+Daily+Central+newspaper+in+three+consecutive+issues.+Article+32+The+contents+of+the+creditor's+conference+shall+be+sufficiently+recorded+in+the+minutes+of+the+conference.+The+minutes+of+the+conference+shall+bear+the+signatures+of+the+Judge%2c+the+court+clerk%2c+the+owner+or+the+legal+representative+of+the+business+and+the+creditors+present+at+the+conference.+Article+33+The+Judge+shall+determine+the+acknowledgment+of+the+record+of+the+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+adopted+at+the+conference+and+the+temporary+suspension+of+the+bankruptcy+proceeding.+The+Judge+shall+cause+the+publication+of+such+decisions+in+the+local+newspaper+and+the+Daily+Central+newspaper+in+three+consecutive+issues.+Article+34+The+owner+or+the+legal+representative+of+the+business+shall+be+responsible+for+the+implementation+of+the+proposed+solutions+for+the+re-organization+of+the+operation+of+the+business+in+accordance+with+the+plan+and+time+limit+adopted+by+the+creditors'+conference.+The+creditors+shall+have+the+obligation+to+implement+the+agreements+which+have+been+reached+at+the+creditors'+conference+and+shall+supervise+the+business+debtor+in+the+implementation+of+such+agreements.+Article+35+If+within+the+time+limit+for+re-organizing+the+business%2c+effective+results+are+achieved+through+the+trading+of+the+business+and+the+business+is+able+to+implement+all+its+obligations+according+to+the+plan+which+has+been+adopted+by+the+creditor's+conference+and+no%0d%0a%0d%0a%0ccreditors+have+lodged+any+complaints+to+the+court+against+the+business%2c+the+owner+of+the+business+shall+have+the+right+to+request+the+Judge+to+suspend+the+bankruptcy+proceeding+against+his+business.+The+Judge+shall+make+a+determination+on+the+suspension+of+the+bankruptcy+proceeding+and+shall+cause+the+publication+of+such+decision+in+the+local+newspaper+and+the+Daily+Central+newspaper+in+three+consecutive+issues.+III.+Declaration+of+Business+Bankruptcy%0d%0a%0d%0aArticle+36+The+Judge+shall+make+the+decision+to+declare+business+bankruptcy+in+the+following+circumstances%3a+1.The+owner+or+the+legal+representative+of+the+business+do+not+come+up+with+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business+in+accordance+with+the+provisions+of+article+20+of+this+law%3b+2.The+owner+or+the+legal+representative+of+the+business+is+unable+to+implement+the+provisions+of+article+28+of+this+law%3b+3.The+creditors'+conference+has+not+adopted+the+proposed+conciliation+measures+and+solutions+for+the+re-organization+of+the+operation+of+the+business.+4.At+the+expiration+of+the+time+limit+for+re-organizing+the+operation+of+the+business+no+effective+results+have+been+achieved+through+the+trading+of+the+business+and+the+creditors+request+for+the+declaration+of+bankruptcy+against+the+business%3b+5.Within+the+time+limit+for+re-organizing+the+business%2c+the+business+have+officially+breached+the+agreements+reached+at+the+creditor's+conference+and+the+creditors+request+for+the+declaration+of+bankruptcy+against+the+business%3b+6.During+the+process+of+a+bankruptcy+proceeding+against+a+private+business+the+owner+of+the+business+goes+into+hiding+or+is+dead+and+his+legal+successor+refuses+his+or+her+inheritance+or+when+the+owner+of+the+business+has+no+legal+successor.+Article+37+A+decision+to+declare+business+bankruptcy+shall+have+the+following+contents%3a+1.Name+of+the+court+and+the+Judge+hearing+the+bankruptcy+proceeding%3b+2.Date+and+the+number+of+the+bankruptcy+petition%3b+3.Name+and+address+of+the+business+which+has+been+declared+bankrupt%3b+4.Date+of+the+declaration+of+business+bankruptcy%3b+5.Reasons+for+the+declaration+of+business+bankruptcy%3b+6.Arrangement+on+the+distribution+of+the+value+of+the+assets+of+the+business%3b%0d%0a%0d%0a%0cThe+decision+to+declare+business+bankruptcy+shall+be+sent+to+the+creditors%2c+the+bankrupted+business+and+the+People's+Inspection+Institution+of+the+same+rank.+Article+38+During+the+process+of+a+bankruptcy+proceeding%2c+the+Judge+shall+make+a+determination+on+the+protection+of+the+pledged+or+mortgaged+property+of+the+business+and+shall+organize+for+the+valuation+of+such+property.+If+the+value+of+the+pledged+or+mortgaged+property+is+insufficient+to+settle+the+debt+of+a+secured+creditor+then+such+creditor+shall+have+the+same+right+as+other+unsecured+creditors+in+the+distribution+of+the+value+of+the+remaining+assets+of+the+business.+If+the+value+of+the+pledged+or+mortgaged+property+is+greater+than+the+amount+of+debt+owed+to+a+secured+creditor%2c+the+difference+in+value+shall+become+part+of+the+remaining+assets+of+the+bankrupted+business.+Article+39+The+distribution+of+the+value+of+the+remaining+assets+of+the+business+shall+be+subject+to+the+following+order+of+priorities%3a+1.Fees+and+expenses+required+in+a+bankruptcy+proceeding+as+determined+by+the+law%3b+2.Unpaid+wages%2c+termination+of+employment+allowances+and+social+insurance+as+determined+by+the+law+and+other+rights+pursuant+to+a+collective+or+individual+labor+agreement%3b+3.Liabilities+on+tax%3b+4.Payments+of+debts+owed+to+the+creditors+whose+names+appear+on+the+list+of+creditors%3a+(a)If+the+value+of+the+remaining+assets+of+the+bankrupted+business+is+sufficient+to+cover+the+debts+of+all+creditors+then+each+creditor+shall+be+paid+in+full+the+amount+owed+to+him+or+her%3b+(b)If+the+value+of+the+remaining+assets+of+the+bankrupted+business+is+insufficient+to+cover+the+debts+of+all+creditors+them+each+creditor+shall+be+paid+proportionately.+5.If+the+value+of+the+remaining+assets+of+the+bankrupted+business+exceeds+the+total+amount+of+debts+owed+to+all+creditors+then+the+difference+in+value+shall+belong+to%3a+(a)+the+owner+of+the+business+in+the+case+of+private+businesses%3b+(b)+the+members+of+the+company+in+the+case+where+the+business+is+a+company%3b+(c)+the+government+budget+in+the+case+of+government+businesses.+Article+40+1.Within+thirty+days+(30)+from+the+date+of+the+court's+decision+to+declare+business+bankruptcy%2c+the+creditors+and+the+bankrupted+business+shall+have+the+right+to+lodge+a+complaint+against+the+decision+to+the+People's+Inspection+Institution+of+the+same+rank+who+has+the+power+to+object+against+such+decision.+If+at+the+expiration+of+this+time+limit%0d%0a%0d%0a%0cthere+has+been+no+complaint+and+objection+against+the+court's+decision+to+declare+business+bankruptcy+then+such+decision+shall+be+of+full+force+and+effect.+In+case+where+there+is+a+complaint+and+objection+against+the+court's+decision+to+declare+business+bankruptcy+then+within+five+days+upon+the+receipt+of+the+objection+from+the+People's+Inspection+Institution%2c+the+Judge+who+made+the+decision+to+declare+business+bankruptcy+shall+forward+the+bankruptcy+file+to+the+Court+of+Appeal+of+the+People's+Supreme+Court.+2.Within+sixty+(60)+days+upon+the+receipt+of+the+bankruptcy+file%2c+a+team+of+three+judges+appointed+by+the+Chief+Justice+of+the+Court+of+Appeal+of+the+People's+Supreme+Court+shall+hear+the+objection+against+the+decision+to+declare+bankruptcy+of+the+court+of+the+first+instance.+The+decision+of+the+Court+of+Appeal+of+the+People's+Supreme+Court+shall+be+the+final+decision.+Article+41+At+least+ten+(10)+days+from+the+date+the+court's+decision+to+declare+business+bankruptcy+becomes+of+full+force+and+effect+the+Judge+shall+cause+for+the+publication+of+such+decision+in+the+local+newspaper+and+the+Daily+Central+newspaper+in+three+consecutive+issues.+A+copy+of+the+decision+to+declare+business+bankruptcy+shall+be+forwarded+to%3a+(a)the+Chamber+of+Execution+of+the+Department+of+Justice%3b+(b)the+creditors+and+the+bankrupted+business%3b+(c)the+People's+Inspection+Institution%2c+financial+and+labor+institutions+of+the+same+rank%3b+(d)the+body+responsible+for+the+issuance+of+a+license+to+establish+a+business.+In+respect+of+the+Chamber+of+Execution+of+Civil+Judgments%2c+a+copy+of+bankruptcy+shall+be+accompanied+by+necessary+documents+for+the+implementation+of+such+decision.+The+Judge+of+the+provincial+Economic+Court+shall+supervise+on+the+passing+of+assets+and+relevant+papers+and+documents+of+the+business+between+the+Property+Management+Team+and+the+Property+Settlement+Team.+CHAPTER+IV+Implementation+of+the+Court's+Decision+to+Declare+Business+Bankruptcy+Article+42+1.The+implementation+of+the+court's+decision+to+declare+business+bankruptcy+shall+be+within+the+jurisdiction+of+the+Chamber+of+Execution+of+the+Department+of+Justice+where+the+main+office+of+the+bankrupted+business+is+located.+2.The+Chairman+of+the+Chamber+of+Execution+shall+designate+an+executive+officer+responsible+for+the+implementation+of+the+court's+decision+to+declare+business+bankruptcy%2c+make+determination+on+the%0d%0a%0d%0a%0cestablishment+of+the+Property+Settlement+Team+and+inspect+and+supervise+the+affairs+of+the+Property+Settlement+Team.+3.The+composition+of+the+Property+Settlement+Team+shall+consist+of%3a+(a)the+executive+officer+and+the+officers+of+the+Chamber+of+Execution%3b+(b)the+representatives+of+financial+and+banking+institutions+of+the+same+rank%3b+(c)the+creditors'+representatives+and+the+Union's+representative+or+the+laborers'+representatives+where+no+Union+organization+has+been+established%3b+(d)the+representative+of+the+bankrupted+business.+The+members+of+the+Property+Management+Team+may+be+designated+to+the+Property+Settlement+Team.+The+Head+of+the+Property+Settlement+Team+shall+be+the+executive+officer+of+the+Chamber+of+Execution.+The+government+shall+provide+regulations+on+the+organization+and+operation+of+the+Property+Settlement+Team.+Article+43+The+executive+officer+responsible+for+the+implementation+of+the+court's+decision+to+declare+bankruptcy+shall+have+the+following+duties+and+powers%3a+1.To+make+determination+on+the+recovery+and+auctions+of+the+property+of+the+bankrupted+business%3b+2.To+implement+the+arrangement+on+the+distribution+of+the+assets+of+the+business+in+accordance+with+the+Judge's+decision+to+declare+business+bankruptcy%3b+3.To+impose+a+blockage+on+the+bank+accounts+of+the+bankrupted+business+presently+existing+at+various+banks+and+open+new+bank+accounts+for+the+deposit+of+the+money+received+from+the+recovery+of+the+debts+owed+to+the+bankrupted+business+and+from+the+auctions+of+the+property+of+the+bankrupted+business.+The+executive+officer+responsible+for+the+implementation+of+the+court's+decision+to+declare+business+bankruptcy+shall+be+responsible+before+the+Chairman+of+the+Chamber+of+Execution+in+the+implementation+of+his+duties+and+powers.+Article+44+The+Property+Settlement+Team+shall+have+the+following+duties+and+powers%3a+1.To+accept+the+passing+on+of+the+assets+and+relevant+papers+and+documents+from+the+Property+Management+Team%3b+2.To+recover+and+manage+all+the+assets%2c+papers+and+accounting+books+of+the+bankrupted+business%3b+3.To+discover+and+request+the+responsible+executive+officer+for+the+recovery+of+the+assets+or+the+value+of+the+assets+or+the+difference+in%0d%0a%0d%0a%0cvalue+of+the+assets+of+the+bankrupted+business+which+were+illegally+sold+or+transferred+in+accordance+with+article+45+of+this+law.+The+Property+Settlement+Team+shall+recover+the+above-mentioned+assets+or+the+value+of+the+assets+and+the+difference+in+value+of+such+assets+pursuant+to+the+decision+of+the+responsible+executive+officer%3b+4.Pursuant+to+the+decision+of+the+executive+officer%2c+the+Property+Settlement+Team+shall+organize+for+the+auctions+of+the+property+of+the+bankrupted+business.+The+auctions+of+the+property+must+be+certified+by+a+State+witness.+If+the+property+auctioned+is+in+the+form+of+a+complete+equipment+it+must+be+sold+as+a+whole+except+where+no+sale+can+be+made+on+the+complete+equipment+as+a+whole+then+parts+of+the+complete+equipment+may+be+sold+separately.+The+organization+of+the+auctions+of+the+property+and+the+determination+on+the+use+of+the+land+of+the+bankrupted+business+must+be+in+accordance+with+the+law%3b+5.To+deposit+all+the+money+received+by+the+business+in+the+newly+opened+bank+account%3b+6.To+implement+the+settlement+of+debts+pursuant+to+the+Judge's+decision+to+declare+business+bankruptcy.+Article+45+1.The+executive+officer+shall+propose+to+the+court+the+recovery+of+the+assets+and+the+value+of+the+assets+or+the+difference+in+value+of+the+assets+of+the+business+if+within+six+months+prior+to+the+date+a+bankruptcy+petition+was+lodged+against+the+business%2c+the+business+has+been+involved+in+the+following+breaches%3a+(a)any+form+of+disbursement+of+the+assets+of+the+business%3b+(b)the+settlement+of+undue+debts%3b+(c)the+abandonment+of+its+right+to+payment+of+the+debts+owed+to+it%3b+(d)the+conversion+of+unsecured+debts+to+secured+debts%3b+(e)the+selling+of+the+assets+of+the+business+with+a+price+less+than+its+actual+value.+2.Prior+to+the+recovery+of+the+assets+or+the+difference+in+value+of+the+assets+of+the+bankrupted+business%2c+the+Property+Settlement+Team+has+the+responsibility+to+produce+the+court's+decision+to+the+parties+involved+in+the+proceeding+and+to+clearly+explain+to+them+the+reasons+for+such+recovery.+All+disputes+on+the+recovery+of+the+assets+or+the+difference+in+value+of+the+assets+of+the+business+shall+be+determined+by+the+court.+Article+46+Within+thirty+(30)+days+from+the+date+a+business+is+declared+bankrupt%2c+an+owner+of+the+assets+which+are+leased+and+loaned+to+the+bankrupted+business+for+its+operation+shall+produce+the+ownership+certificate+and+the+lease+or+loan+agreement+in+respect+of+those+assets+to+the+executive+officer+in+order+to+retrieve+back+his%2fher+property.+In+cases+where+the+bankrupted+business+have+already+paid+its+rent+in+advance+but+the+term+of+the+lease+has+not+expired+then+the+owner+of+the+assets+shall+only+be+able+to+retrieve+back+his+property+after+he%0d%0a%0d%0a%0chas+refunded+the+business+the+amount+of+rent+in+respect+of+the+remaining+term+of+the+lease.+The+Property+Settlement+Team+shall+form+such+refunds+as+part+of+the+remaining+assets+of+the+business.+Article+47+During+the+implementation+process+of+the+court's+decision+to+declare+business+bankruptcy%2c+the+parties+involved+shall+have+the+right+to+lodge+a+complaint+to+the+Chairman+of+the+Chamber+of+Execution+of+the+Department+of+Justice.+Within+seven+days+upon+the+receipt+of+the+complaint%2c+the+Chairman+shall+consider%2c+determine+and+respond+to+the+complaint.+If+the+complainant+does+not+agree+with+the+decision+of+the+Chairman+of+the+Chamber+of+Execution+of+the+Department+of+Justice+he+or+she+shall+have+the+right+to+lodge+a+further+complaint+against+such+decision+to+the+Chairman+of+the+General+Department+of+Management+and+Execution+of+Civil+Judgments+of+the+Ministry+of+Justice.+Within+thirty+(30)+days+upon+the+receipt+of+the+complaint%2c+the+Chairman+of+the+General+Department+of+Management+and+Execution+of+Civil+Judgments+shall+make+one+of+the+following+decisions%3a+1.To+confirm+the+decision+of+the+Chairman+of+the+Chamber+of+Execution+of+the+Department+of+Justice.+2.To+set+aside+the+decision+of+the+Chairman+of+the+Chamber+of+Execution+of+the+Department+of+Justice+and+order+him+to+redetermine+the+complaint.+Article+48+At+the+end+of+the+settlement+process%2c+the+Chairman+of+the+Chamber+of+Execution+shall+make+a+decision+to+terminate+the+implementation+of+the+court's+decision+to+declare+business+bankruptcy.+This+decision+shall+be+sent+to+the+body+responsible+for+the+registration+of+the+bankrupted+business+so+that+it+can+expunge+the+name+of+the+bankrupted+business+out+of+the+business+registration+book.+CHAPTER+V+Dealing+with+Breaches+Article+49+1.Any+person+who+involves+in+the+following+breaches%2c+depending+on+the+degree+of+seriousness+shall+be+administratively+punished+and+subject+to+payment+of+damages+or+criminal+prosecution+in+accordance+with+the+law%3a+(a)the+carrying+out+of+activities+prohibited+under+article+18+of+this+law+or+engaging+in+other+fraudulent+conducts+during+the+process+of+a+bankruptcy+proceeding%3b+(b)the+making+of+threats+or+other+form+of+coercion+forcing+the+business+debtor+to+lodge+a+bankruptcy+petition%3b+(c)intentionally+causing+damages+or+destroying+the+property+of+the+business.+2.If+the+Judge%2c+members+of+the+Property+Management+Team%2c+the+executive+officer+and+the+members+of+the+Property+Settlement+Team+during+the+process+of+a+bankruptcy+proceeding+violates+any+provisions+of+this+law%0d%0a%0d%0a%0cand+other+provisions+of+the+law%2c+depending+on+the+degree+of+seriousness+shall+be+disciplined+or+subject+to+criminal+prosecution+in+accordance+with+the+law.+Article+50+1.The+Director%2c+the+Chairman+and+the+members+of+the+Board+of+Management+of+a+bankrupted+business+shall+be+prohibited+from+undertaking+such+positions+at+any+other+business+within+one+to+three+years+from+the+date+the+business+was+declared+bankrupt.+2.The+Director%2c+the+Chairman+and+the+members+of+the+Board+of+Management+of+a+bankrupted+business+shall+not+be+subject+to+point+1+of+this+article+under+the+following+circumstances%3a+(a)the+business+is+bankrupted+due+to+force+majeure+as+determined+by+the+government%3b+(b)the+Director%2c+the+Chairman+and+the+members+of+the+Board+of+Management+are+not+directly+responsible+for+the+grounds+upon+which+the+bankruptcy+is+found%3b+(c)the+Director+or+the+Chairman+of+the+Board+of+Management+have+voluntarily+lodged+a+bankruptcy+petition+against+the+business+in+accordance+with+the+law+and+have+fully+paid+the+creditors+of+the+business.+CHAPTER+VI+Implementing+Provisions+Article+51+This+law+shall+be+applicable+to+a+bankruptcy+proceeding+against+businesses+which+involves+foreign+individuals+and+organizations+except+where+an+International+Treaty+which+has+been+entered+by+the+Socialist+Republic+of+Vietnam+provides+otherwise.+Article+52+This+law+shall+be+of+full+force+and+effect+as+from+1+July+1994.+All+previous+provisions+inconsistent+with+this+law+are+hereby+repealed.+The+Government%2c+the+People's+Supreme+Court+and+the+People's+Inspection+Institution+shall+provide+for+the+detail+implementation+of+this+law.+This+law+has+been+passed+by+IX+legislature%2c+session+No.+4+of+the+National+Assembly+of+the+Socialist+Republic+of+Vietnam+on+30+December+1993.+For+the+National+Assembly+President+of+the+National+Assembly+NONG+DUC+MANH+(Signed)%0d%0a%0d%0a%0cBackBack+%3cindex.html%3e%0d%0a%0d%0a%0c