| THE PRESIDENT No. 11/2014/L-CTN | THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, June 30, 2014 |
ORDER
On the promulgation of law
THE PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM
Pursuant to Articles 88 and 91 of the Constitution of the Socialist Republic of Vietnam;
Pursuant to Article 91 of the Law on Organization of the National Assembly;
Pursuant to Article 57 of the Law on the Promulgation of Legal Documents,
PROMULGATES:
The Law on Bankruptcy,
which was passed on June 19, 2014, by the XIIIth National Assembly of the Socialist Republic of Vietnam at its 7th session.
President of the Socialist Republic of Vietnam
TRUONG TAN SANG
TRUONG TAN SANG
| THE NATIONAL ASSEMBLY No. 51/2014/QH13 | THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
LAW ON BANKRUPTCY
Pursuant to the Constitution of the Socialist Republic of Vietnam;
The National Assembly promulgates the Law on Bankruptcy.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Law prescribes the order and procedures for submission and acceptance of petitions for initiation of bankruptcy procedures, and for initiation of bankruptcy procedures; the determination of property obligations and measures to preserve property in the course of bankruptcy settlement; the procedures for business restoration, the declaration of bankruptcy and enforcement of decisions on declaration of bankruptcy.
Article 2. Subjects of application
This Law applies to enterprises, cooperatives and unions of cooperatives (below collectively referred to as cooperatives) which are established and operate in accordance with law.
Article 3. Application ofthe Law on Bankruptcy
1. The Law on Bankruptcy applies when the bankruptcy of enterprises and cooperatives established in the territory of the Socialist Republic of Vietnam is settled.
2. Where a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Law, the provisions of such treaty prevail.
Article 4. Interpretation of terms
In this Law, the terms and expressions below are construed as follows:
1. Insolvent enterprise or cooperative means an enterprise or a cooperative that fails to perform the obligation to pay its debts within 3 months after such debts become due.
2. Bankruptcy means the state of insolvency of an enterprise or a cooperative which is declared bankrupt by a people’s court.
3. Creditors means individuals, agencies and organizations that have the right to request an enterprise or a cooperative to perform the obligation to pay debts. Creditors include unsecured creditors, partially secured creditors and secured creditors.
4. Unsecured creditor means an individual, agency or organization that has the right to request an enterprise or a cooperative to perform the obligation to pay a debt not secured with assets of the enterprise or cooperative or a third party.
5. Secured creditor means an individual, agency or organization that has the right to request an enterprise or a cooperative to perform the obligation to pay a debt secured with assets of the enterprise or cooperative or a third party.
6. Partially secured creditor means an individual, agency or organization that has the right to request an enterprise or a cooperative to perform the obligation to pay a debt secured with assets of the enterprise or cooperative or a third party in case the value of the security assets is lower than that of such debt.
7. Asset management officer means an individual who practices management and liquidation of assets of an insolvent enterprise or cooperative in the course of bankruptcy settlement.
8. Asset management and liquidation firm means an enterprise that practices management and liquidation of assets of an insolvent enterprise or cooperative in the course of bankruptcy settlement.
9. Bankruptcy procedure-conducting persons include chief justices of people’s courts, judges; chief procurators of people’s procuracies, procurators; asset management offiers, asset management and liquidation firms; heads of civil judgment enforcement agencies and enforcers in the course of bankruptcy settlement.
