If the supply of goods has been completed but the price has not been paid, or conversely, the price has been paid for the purpose of purchasing the goods but the goods have not been received, prompt legal action is required.
Debt Confirmation · Implementation Reminder · Warning · Court Record · Litigation · Mediation · Arbitration · Provisional Seizure · Transaction Suspension · Bank Account Freezing · Departure Prohibition · Enforcement · Seizure · Auction · Registration Inquiry · Collateral Inquiry · Real-estate Ownership Inquiry · Bankruptcy Declaration · Creditor Meeting
Debt Confirmation is an action of leaving the contents of the remaining bonds as a record between the creditor and the debtor at the time of the dispute. If the dispute has already been intensified but the bond has not been confirmed, it is recommended to confirm the debt with a Court Record generation procedure.
- Defining Debt Origin : Trading Contract, Delivery Confirmation & Etc.
- Calculating Debt Principal & Interest
- Debtor's Confirmation
The most important of the above is the debtor's confirmation, and a caution is required on the action, because many creditors inadequately prepare the relevant info & documents on the debtor's confirmation, and later the lack parts may cause disadvantages in litigation and arbitration to the creditors.
Implementation Reminder · Warning
If no progress has been made despite significant efforts to promote implementation, using a specialized debt recovery agent should be considered before the situation to be get worse. Implementation Reminder without a specialized debt agent may be un-smooth, because of the below reasons.
- If the debtor's legal representative can't speak your language, you need to communicate with the one through an interpreter, but in almost of the cases, interpreting a dispute is not simple.
- The creditors usually use their Vietnamese employees to notify debt argument issues to the debtors, but there is no employees who feel happy for the type of works.
- The debt may have a concern with the creditor's internal corruption between employees.
- Sometimes, either or both of the debtors and creditors may get the situation too emotionally.
Many of our cases are being resolved during the implementation reminder step without a litigation or an arbitration, because a proper approach may motivate the debtor to realized the worse situations, and that makes them to hurry up to resolve the debt earlier than their plan.
What if your case goes to a litigation or an arbitration, your efforts on resolving the debt will be one of the judge's or the arbitrator's checking points. So you'd better generate Court Records before the litigation or the arbitration by using bailiffs.
The court records (vi bằng) are kept in the district court with attachments such as documents, photos & videos which record all situations that occurred in the specific time as the bailiff viewpoint.
Making all the happening between the debtor as court records by bailiffs is very helpful to reduce the time spent in courts or arbitration centers.
Litigation · Mediation
If the reimbursement is not made even after considerable attempts to collect the debt, the government enforcement decision must be obtained through a civil litigation. A civil litigation between Vietnamese companies is conducted in a district level court where the defendant (the debtor) is located. But if there is any party which is a foreign company, the litigation is conducted in a city level court.
Civil proceedings can be held in two trials, including an appeals trial, and it takes about 6 to 24 months to the final court judgement. However, there is no need to worry too much that civil litigation always takes a very long time, because many civil litigation are closed earlier than the time by a court mediation procedure. The mediation decision from the court has the same power of a final court judgement.
If you add an arbitration agreement clause to the trading contract or the debt confirmation, you can achieve an enforcement right through an arbitration center, not a court. Compared to a court litigation, an arbitration is made within maximum 100 days, and it has the same effect as the court's final judgement.
- Why do people prefer arbitration over litigation?
- How do I add an arbitration agreement on a trading contract & a debt confirmation?
- If I do not have an arbitration agreement on the trading contract & the debt confirmation, can't I proceed an arbitration?
Provisional Seizure · Transaction Suspension · Bank Account Freezing · Departure Prohibition
According to the Article 114 of Civil Procedure Law (92/2015/QH13), the plaintiff can request emergency legal measure such as provisional seizures, transaction suspensions, bank account freezing & departure prohibition of the defendant to the court.
The Vietnamese emergency legal measures are only possible to be proceeded with a litigation or an arbitration.
In addition, the emergency legal measure can be done in a limited scope, so what if you expect strong enforcement, hurrying up the litigation or the arbitration is the only way.
Enforcement · Seizure · Auction
After achieving a court mediation decision, a final court judgement or an arbitration decision, you can start enforcement procedures through the enforcement agency. There can be many types of enforcement action, not only seizures and auctions, so you'd better have a discussion with a specialized debt recovery firm to find the best enforcement methodology for your case.
Registration Inquiry · Collateral Inquiry · Real-estate Ownership Inquiry
Department of Investment & Planning (DPI) & Tax Agency are providing their own company registration information service public-ally. Also Ministry of Justice (MoJ) is providing a public collateral information system as well. So using those kinds of systems through your legal agent will give you more ideas to recover the debt.
- What items are legally inquiry-able abut the debtor?
Bankruptcy Declaration · Creditors' Meeting
Generally, the company's liquidation or bankruptcy is conducted by the company's direct application, but the creditor may unilaterally apply for bankruptcy against the debtor who has a debt which has not been paid off for a certain period of time. In this case, the court will review the suitability of bankruptcy, and in the process several creditors' meetings will be held to decide how to dispose of the remaining debtor's assets.
- Procedures and Required Time for Bankruptcy Declaration by Court
- The debtor's court bankruptcy procedure is in progress, but I was not asked to attend the creditors' meeting.