Chapter XII
IMPLEMENTATION OF DECISIONS ON DECLARATION OF BANKRUPTCY
Article 119. Entitlement to implementation of Decisions on declaration of bankruptcy
The entitlement to the implementation of every Decision in declaration of bankruptcy is prescribed in this Law, the civil law and other relevant law provisions.
Article 120. Procedures for implementation of Decisions on declaration of bankruptcy
1. The civil execution authority shall issue the Decision on implementation and assign the bailiff to implement the Decision on declaration of bankruptcy within 05 working days from the issuance of an Decision on declaration of bankruptcy.
2. After assigned by the Head of the civil execution authority, the bailiff shall:
a) open an bank account held by the civil execution authority in charge of implementing the Decision on declaration of bankruptcy to send confiscated money of the insolvent entity;
b) supervise the asset liquidation conducted by the asset management officer and asset management enterprise;
c) enforce the asset confiscation and transfer the assets to the buyers under the regulations of the law on civil execution;
d) redistribute the assets according to the Decision of declaration of bankruptcy after receiving the report of the asset management officer and asset management enterprise on the asset liquidation.
Article 121. Requesting asset management officers and asset management enterprises to conduct asset liquidation
1. The bailiff shall send a written request that the asset management officer and asset management enterprise conduct the asset liquidation within 02 working days from the receipt of the Decision on the appointment of the Head of the civil execution authority.
2. A written request for the conduct of asset liquidation includes:
a) date;
b) name of the bailiff;
c) names of the asset management officer and asset management enterprise conducting asset liquidation.
d) name and address of the entity declared bankrupt;
dd) specific methods of asset liquidation in accordance with the regulations in Articles 122, 123 and 124 of this Law.
3. The written request for the asset liquidation must be sent to the People’s Court, the People’s Procuracy and the persons involved in the bankruptcy process.
4. If the asset management officer and asset management enterprise do not conduct the asset liquidation within 02 years from the receipt of the written request of the bailiff prescribed in Clause 2 this Article, the asset management officer and asset management enterprise must end the asset liquidation and transfer the documents and assets of the entity declared bankrupt to the civil execution authority for consideration under the regulations of the law.
Article 122. Asset valuation
1. The asset management officer and asset management enterprise must carry out the valuation of the assets within 10 working days from the issuance of the Decision on declaration of bankruptcy under the regulations of the law.
The asset management officer and asset management enterprise must not sign the contract for valuation with any entity related to their rights and benefits.
2. If the liquidated assets are likely to be damaged or their value is likely to decrease, the asset management officer and asset management enterprise shall valuate the assets and conduct liquidation under the regulations of the law.
Article 123. Asset revaluation
1. In case of any serious violation against the regulations in Article 122 of this Law leading to the inaccurate result of the asset valuation, the assets shall be revalued.
2. The Judge shall decide the revaluation in case of sale of assets prescribed in Clause 3 Article 23 of this Law. The bailiff shall decide the revaluation in case of asset liquidation
Article 124. Sale of assets
1. The assets shall be sold:
a) by auction;
b) without auction.
2. The movables to the value of more than VND 10 million and real estate shall be put up for auction under the regulations of the law on asset auction.
Any asset management officer and asset management enterprise can negotiate with the auctioneer within 05 days from the valuation. The asset management officer and asset management enterprise shall sign the contract for the asset auction with the auctioneer.
If the asset management officer and asset management enterprise fail to conclude the negotiation, a auctioneer shall be appointed by the bailiff to sign the contract for the asset auction.
The contract for asset auction shall be signed within 10 days from the valuation/
The movables shall be put up for auction within 30 days and the real estate shall be put up for auction within 45 days from the signing of the contract for asset auction.
3. The asset management officer and asset management enterprise shall put the assets up for auction if:
a) the assets locate at any province where there are no auctioneers at all or no auctioneers signing the contract for asset auction.
b) the movables are worth from VND 2 million to VND 10 million.
The movables shall be put up for auction within 30 days and the real estate shall be put up for auction within 45 days from the valuation or the receipt of the refusal notice about the auction.
4. The asset management officer and asset management enterprise shall sell the assets to the value of less than VND 2 million or the assets prescribed in Clause 2 Article 122 of this Law without auction.
The assets shall be sold within 05 working days from the issuance of the Decision on the implementation of the Decision on declaration of bankruptcy or the Decision on the sale of assets.
5. The procedures for the auction are prescribed in the regulations of the law on asset auction.
Article 125. Confiscation of assets
1. The asset management officers, asset management enterprises and bailiffs shall request the People’s Courts to issue the Decisions on Confiscation of assets of the enterprises and cooperatives due to invalid deals in accordance of the regulations in Article 59 of this Law. The assets shall be confiscated under the regulations of the civil law.
2. Any dispute about the confiscation of assets or the difference of the asset value shall be handled in accordance with the regulations in Article 115 of this Law.
Article 126. Suspension of Decisions on declaration of bankruptcy
The head of the civil execution authority shall suspend the Decision on declaration of bankruptcy when:
1. The entity declared bankrupt has no assets to be redistributed;
2. The assets of the entity declared bankrupt are completely redistributed;
3. The Head of the civil execution authority shall report the bankrupt settlement to the People’s Court and notify the suspension of the implementation of the Decision on declaration of bankruptcy to the relevant entities.
Article 127. Handling assets of an entity after it is declared bankrupt
1. In case a transaction is found invalid as prescribed in Article 59 of this Law after an entity is declared bankrupt, the asset management officer or asset management enterprise is entitled to request the Court to declare the transaction invalid, handle the consequences, and redistribute assets of the entity in accordance with Article 54 of this Law.
2. If case assets of an entity have not been redistributed after it is declared bankrupt, the Court that makes the declaration shall consider redistributing assets in accordance with Article 54 of this Law.
3. Civil execution authorities shall decide the asset redistribution in accordance with Clause 2 of this Article.
Article 128. Handling of complaints about implementation of Decisions on declaration of bankruptcy
The complaints and handling of complaints about the implementation of the Decisions on declaration of bankruptcy must comply with the regulations of the civil law.
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