Flow chart of bankruptcy procedures by Song Pha Asset Management and Liquidation Company headquartered in Ho Chi Minh City
Pursuant to the Bankruptcy Law 2014:
Step 1: File a request to open bankruptcy proceedings èPay bankruptcy fee advance.
Step 2: Mediation and processing of petitions to open bankruptcy proceedings. The court receives and considers the application to open bankruptcy proceedings
è The court returns the application or transfers it to the competent court or notifies the payment of fees and bankruptcy advance or requests to amend or supplement the application (return the application if the requester does not amend or supplement the application)
è Declare the enterprise or cooperative bankrupt in special cases or conciliate in cases of conciliation before opening bankruptcy proceedings and accept the request to open bankruptcy proceedings from the date of submission of the filing receipt of fees, bankruptcy fee advances
è The court decides to open or not to open bankruptcy proceedings.
Step 3: Open bankruptcy proceedings. Decide to open or not to open bankruptcy procedures
è Notice of decision to open or not to open bankruptcy proceedings
è Determine asset obligations and asset preservation measures: Asset inventory; prepare a list of creditors; prepare a list of debtors.
Step 4: Convene a creditors' meeting:
- First creditors' conference (postponement of creditors' conference).
- Second creditors' conference: Suspension of bankruptcy proceedings when a member of the creditors' conference is absent. Approval of the creditors' conference's resolution on solutions to reorganize business activities; payment plans for creditors, etc.
è Business recovery; or bankruptcy assets settlement procedures
Step 5: Business Recovery.
è Suspension of bankruptcy proceedings or Suspension of business recovery proceedings.
Step 6: Issue a decision declaring enterprises and cooperatives bankrupt
Step 7: Implementation of the Decision declaring enterprises and cooperatives bankrupt
- Liquidation of bankruptcy assets;
- Divide proceeds from the sale of assets of enterprises and cooperatives to subjects in the order of asset division.
Company Diagram:
Customer Diagram:
