Debt recovery has always been a difficult problem for every corporates, organizations and individuals up to now. This is a very difficult and sensitive job, requiring debt collectors to have a clear understanding of legal issues such as lawsuit procedures, lawsuit documents to protect the legitimate rights and interests of individuals and businesses, industry, organization. Lac Duy & Associates will analyze the corporate debt recovery process.
What Is Bad Debt? Methods of Bad Debt Recovery
Firstly: Prepare lawsuit petitions, corporate debt recovery lawsuits include
- A lawsuit petition form;
- Identity card and household registration book of the litigator
- Papers and documents proving that the enterprise is currently operating and its legal status, legal status of the enterprise.
- Papers and documents proving the loan, money delivery and payment;
- Papers proving that the case still has statute of limitations for lawsuit (if any).
Secondly: Summit a lawsuit petition
- The litigator submits a lawsuit petitions with materials and evidences at the People’s Court of the district/ town where the enterprise is headquartered if no other litigant is currently residing overseas, disputed assets not in a foreign country and there is no need for judicial mandate to an agency abroad.
- The filing of the petitions can be through the e-portal or directly
Thirdly, the Court processes the petitions.
After the Court receives the petition, the Court will consider the petition and issue one of the following notices:
- Return of lawsuit petitions: After receiving the lawsuit petition, if the case falls into the case of returning the petition as provided for in the Code of Civil Procedure, the Court shall return the petitions and materials and evidences then notify the litigator in documents.
- Notice of modification and supplementation of the lawsuit petitions: 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 law provisions. 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
Fourthly: 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.
Note on the statute of limitations for lawsuit: Article 429 of the Civil Code 2015 provides that the statute of limitations for initiating a lawsuit to request the Court to resolve a contract dispute is 03 years, from the date the person with the right to request knows or must know the right and their legitimate interests were violated. Therefore, the statute of limitations in this case is determined to be 03 years from the date the enterprise violates its obligation to repay the debt or infringes upon the rights and interests of the lender.
Above is the corporate debt recovery process. Where, 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 need 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