There are debtors who not only need to use negotiating method which they will proactively make payments but there are also debtors that the company has to combine many measures such as pressure and negotiation but still can’t collect the debt. The last resort now is to sue through the Court. In today’s article, Lac Duy & Associates will give an overview of the debt recovery process through the Court.
More information: Litigation Process Of Corporate Debt Recovery
Conditions for the Court to settle disputes related to debt recovery
- Firstly, the case is still in the statute of limitations for lawsuit, namely 03 years from the date individuals, agencies and organizations know that their legitimate rights and interests are infringed.
- Secondly, the filing of the lawsuit file must comply with the Court’s jurisdiction:
- The involved party has the right to request the District Court of the district where the defendant resides and work to resolve the dispute.
+ In case a dispute arises from a contractual relationship, the litigant has the right to initiate a lawsuit at the People’s Court of the district where the contract is performed.
+ In the case, the property loan contract of the parties has a specific court agreement and this agreement is not contrary to the law, the involved parties shall file a lawsuit at that court.
Note: If the litigant is located in a foreign country or the disputed property is overseas or requires a judicial mandate to an overseas agency, the applicant must request the provincial court where the defendant resides and works to initiate to sue.
- Thirdly , the petition must be true and complete in accordance with the law, including:
+ A petition form;
+ Identity Card and Household Registration Card of the litigator;
+ State agency’s certification of the defendant’s residence and working address;
+ Loan papers or loan agreement and other documents proving the loan / loan;
+ Papers proving that the debtor has violated payment obligations;
+ Papers proving that the case still has statute of limitations for lawsuit (if any)
Procedures for accepting courts and time limit for settlement:
Procedures for accepting the case
After the Court receives the petition, the Court will consider the petition and issue one of the following notices:
- Return the lawsuit petition: After receiving the lawsuit petition, if the case falls into the case of returning the petition as provided for in the Civil Procedure Code, the Court shall return the petition and accompanying documents and evidence. follow and notify the litigator in writing.
- Notice of modification and supplementation of the lawsuit petition: In case, the Court finds that the litigator must amend or supplement the petition or provide additional documents and evidence to clarify the right to initiate a lawsuit and grounds for initiation to sue.
- Notice of payment of court cost advances: If the case meets all conditions to initiate lawsuits and the lawsuit petition has followed the regulations, the Court shall notify the litigator to pay the court fee advance according to the provisions of law. Except for cases exempted from advance payment.
- Notice of acceptance of the case: The court shall issue a notice of acceptance of the case in case the petition is complete in accordance with law and the litigator has returned to the Court the receipt of the advance of court fees in specified time limit
The court proceeds to resolve the case
- Time for mediation and trial preparation is 4-6 months from the date of acceptance of the case. Time limit for opening a court hearing: Within 30 days from the date the Court issues the decision to bring the case to trial, the Court may extend it according to the provisions of the Civil Procedure Code.
- During the first-instance trial preparation of the case, the Court shall conduct conciliation for the involved parties to reach agreement on the resolution of the case.
- In case mediation is not possible or mediation cannot be conducted, the Court will conduct necessary procedures to resolve the case and bring the case to trial.
Above is the process of debt collection through the Court. In case you need to provide legal services related to: debt collection, domestic debt collection, international debt collection, bad debt collection, international debt collection, international debt settlement, bad debt collection, how to resolve disputes on debt handling, bad debt disputes … or needing to find a lawyer to advise on bad debt recovery, a lawyer to advise on debt collection of foreign companies, a lawyer to recover debts in HCM … You can contact Lac Duy & Associates
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