Chapter IV
FINANCIAL OBLIGATIONS
Article 51. Valuation of financial obligation
1. The valuation of financial obligations that an insolvent entity incurs before the People’s Court makes the Decision on the initiation of bankruptcy process shall be carried out when such Decision is issued.
2. The valuation of financial obligations that an insolvent entity incurs after the People’s Court makes the Decision on the initiation of bankruptcy process shall be carried out when the Decision on the declaration of bankruptcy is issued.
3. In case the financial obligations prescribed in Clause 1 and Clause 2 this Article are not in money, the People’s Court shall valuate the obligations in money.
Article 52. Determination of interest on debts
1. The interest on the debts shall be charged under the agreement from the issuance of the Decision on initiation of bankruptcy process but the payment for such interest shall be delayed.
If the judge gives a decision on suspending bankruptcy process according to Article 86 of this Law and/or suspending the plan to resume the business operation according to Point a Clause 1 Article 95 of this Law, the parties shall continue to pay the interest as agreed.
2. The interest on any debt arising during the time from the initiation of the bankruptcy process to the declaration of bankruptcy shall be determined according to the agreement under the regulations of the law.
3. From the day of the declaration of bankruptcy of the insolvent entity, the interests on debts are no longer charged.
Article 53. Handling secured debts
1. After the initiation of bankruptcy process, the asset management officers and/or asset management enterprises shall request the judge to handle the secured debts that are suspended as prescribed in Clause 3 Article 41 of this Law. The judge shall consider and decide as follows :
a) If the assets put up as collateral are used for resuming the business operation, they shall be handled according to the Resolution of creditors’ meeting;
b) If the plan to resume business operation is not implemented or the assets put up as collateral are not necessary to resume the business operation, the assets shall be handled according to effective period of the contract, with regard to any secured contract which is due. With regard to any secured contract that is undue, the People’s Court shall suspend the contracts and handle the secured debts before the declaration of bankruptcy. The secured debts shall be handled according to Claus 3 this Article.
2. If the assets put up as collateral are likely to be damaged or dramatically devalued, the asset management officers and/or asset management enterprises shall request the judge to immediately handled them according to Clause 3 this Article.
3. The assets put up as collateral prescribed in Point b Clause 1 and Clause 2 this Article shall be handled as follows:
a) The secured debts determined before the People’s Court receives the written request for initiation of bankruptcy process shall be paid by the collateral.
b) If the value of the collateral is not enough to cover the debt, the remaining value of the debt shall be paid during the liquidation of the assets of the insolvent entity; if the value of the collateral is higher than the debt, the difference shall be included in the value of the assets of the insolvent entity.
Article 54. Sequence of redistribution of assets
1. When the judge gives the Decision on the declaration of bankruptcy, the assets of the insolvent entity shall be redistributed in the following sequence:
a) Cost of bankruptcy
b) The unpaid salaries, severance pay, social insurance and medical insurance to employees, other benefits according to the labor contracts and collective bargaining agreements;
c) Debts incurred after the initiation of bankruptcy which are used for resuming the business operation.
d) Financial obligations to the Government; unsecured debts payable to the creditors on the list of creditors; secured debts which are not paid because the value of collateral is not enough to cover such debts.
2. The remaining amount of the asset value after every payment prescribed in Clause 1 this Article has been made shall belong to:
a) Members of the cooperative ;
b) Owners of the private enterprises;
c) Owners of the single member limited companies;
d) Members of multi-member limited liability companies , shareholders of the joint-stock companies;
dd) members of the partnerships;
3. If the value of the assets of the insolvent entity is not enough to make the payment as prescribed in Clause 1 this Article, the entities given the same priority shall be paid in proportion to the debt.
Article 55. Financial obligations in cases of joint responsibility or guarantees
1. If there are many enterprises and/or cooperatives having joint responsibility to a debt while one or all of the entities are insolvent, the creditor may claim the payment for the debt from any entity according to the regulations of the Law.
2. In case an guarantor is insolvent, the guarantee is handled as follows:
a) The guarantor must fulfill every obligation to the guarantee that arises. If the guarantor does not pay sufficiently in the range of guarantee, the creditor may request the guarantee obtainer to pay the deficiency;
b) If the obligation to the guarantee is not occur yet, the guarantee obtainer must find another measure for guarantee, except the guarantee obtainer has other agreements with the creditor.
3. If the guarantee obtainer or both the guarantor and the guarantee obtainer are insolvent, the guarantor shall take the liability of the guarantee obtainer according to the regulation of the Law.
Article 56. Returning rented or borrowed assets on the declaration of bankruptcy of an insolvent entity
1. Within 10 working days from the receipt of the Decision on declaration of bankruptcy, the owners of the assets rented or borrowed by the insolvent entity must present proof of the ownership, rental contract or borrowing contract to the civil execution authorities in order to take back the assets.
2. If the insolvent entity has paid the rent in advance and the rental period has not ended, the owners shall take back the assets after paying the amount in proportion to the remaining rental period in order for the civil execution authorities to include the amount in the assets of the entity.
3. If the insolvent entity has transferred the rented or borrowed assets to other parties and cannot take back, the owners of the assets may request for compensation for the assets which is considered an unsecured debt.
Article 57. Returning collaterals
The insolvent entity shall only return the collaterals to the individuals and/or organizations who have transferred the assets to the entity in order to fulfill their obligations to the entity before the People’s Court initiates bankruptcy process in case the individuals and/or organizations have fulfilled their obligations to the entity.
Article 58. Retrieving sold assets
If the sellers have sent the goods to the insolvent entity but have not received the payment for such goods and the insolvent entity has not received such goods, the sellers shall take back the goods.. If the insolvent entity has received the goods and cannot return them, the sellers shall be considered the creditors of unsecured debts.
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Luật Phá sản 2014 (Bản Word)
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