Procedures for Executing Decisions on Declaration of Bankruptcy in Vietnam under Decree No. 64/2026/ND-CP: Key Points to Note

This Decree not only clarifies the coordination process between Civil Judgment Enforcement Agencies and Asset Management Practitioners (Liquidators) but also standardizes the steps for asset verification, payment into escrow accounts, and the handling of leased or borrowed assets. In this article, we will analyze in detail the implementation sequence and the responsibilities of the involved parties to help readers and businesses grasp the latest legal roadmap.

I. Issuance of Decisions to Execute Decisions on Declaration of Bankruptcy

1. The Head of the Civil Judgment Enforcement Agency shall issue an execution decision for each decision on the declaration of bankruptcy.

2. The procedures for issuing the execution decision shall comply with the laws on civil judgment enforcement.

II. Requesting Asset Management Practitioners/Enterprises to Organize the Execution

1. A written request for Asset Management Practitioners or Asset Management and Liquidation Enterprises as prescribed in Point a, Clause 3, Article 76 of the Law on Recovery and Bankruptcy must include the following primary contents:

• Number, date, month, year, and name of the issuing agency;
• Name of the requesting Enforcement Officer (Bailiff);
• Name of the Asset Management Practitioner or Enterprise executing the decision;
• Name, address, head office, and business code of the bankrupt entity;
• Content of the request.

2. If the Asset Management Practitioner/Enterprise refuses to organize the execution as per Clause 2, Article 11 of the Law on Recovery and Bankruptcy, they must send a written refusal stating the reasons to the People’s Court and the Civil Judgment Enforcement Agency within 03 working days from the receipt of the request.

3. Within 03 working days of receiving such refusal, the Judge shall issue a decision to change the Practitioner or a written refusal to change (with reasons stated). The Practitioner must comply with the Judge’s final decision.

III. Notification and Delivery of Documents and Decisions

1. Asset Management Practitioners/Enterprises issuing documents regarding the execution must notify the Court, the Procuracy, the Civil Judgment Enforcement Agency, and participants in the bankruptcy proceedings within 03 working days.

2. The notification of documents issued by the Civil Judgment Enforcement Agency or Enforcement Officers shall follow civil judgment enforcement laws.

IV. Verification of Conditions for Executing Bankruptcy Decisions

1. Within 09 days of receiving the request, the Asset Management Practitioner/Enterprise shall verify the execution conditions of the bankrupt entity, debtors, and parties with secured assets. Debtors are responsible for honest declaration and providing full information on assets and income.

2. Verification costs are identified as bankruptcy costs and must be paid accordingly.

V. Payment into the Account of the Civil Judgment Enforcement Agency

1. Within 15 days of receiving the execution decision, the Enforcement Officer shall request the Court to transfer collected funds from the Court’s designated bank account to the Civil Judgment Enforcement Agency’s account. The Court must transfer the funds within 07 days.

2. For prepaid rent (under Clause 2, Article 79 of the Law), the Practitioner shall request the asset owner to transfer the remaining rent within 07 days.

3. Asset buyers and recipients must transfer payments into the account designated by the Civil Judgment Enforcement Agency.

4. Money transfer fees are paid from the asset value of the bankrupt entity.

VI. Entrustment of Execution

1. Agencies may entrust the execution or asset handling to other Civil Judgment Enforcement Agencies.

2. In case of a single entrustment, the receiving agency opens a bank account to collect funds and handle payments.

3. For specific secured assets, the receiving agency must transfer collected funds to the entrusting agency within 03 working days of receipt.

VII. Procedures for Returning Leased or Borrowed Assets

1. The Civil Judgment Enforcement Agency receives requests and ownership documents from asset owners. Within 03 working days, the Enforcement Officer notifies the Asset Management Practitioner.

2. Within 07 days of receiving the documents (or once the lessor has settled remaining rent), the Practitioner returns the assets to the owner and reports to the Enforcement Officer.

VIII. Payment of Monies and Collection of Execution Fees

1. Within 10 days of receiving funds or handing over assets, the Enforcement Officer performs payments according to the bankruptcy decision.

2. Bankruptcy costs (advances, estimates, settlements) follow civil judgment enforcement regulations.

3. Judgment creditors must pay enforcement fees. However, no fees are collected if the Practitioner sells the remaining assets without the Enforcement Officer issuing a coercive decision.

IX. Responding to Protests and Recommendations from the People’s Procuracy

1. Responses to protests regarding the acts of the Head of the Enforcement Agency or Enforcement Officers follow civil judgment enforcement laws.

2. Asset Management Practitioners must respond to protests from the Procuracy within 15 days and report to the Enforcement Officer.

X. Conclusion

In summary, Decree No. 64/2026/ND-CP (effective from March 1, 2026) serves as a vital "compass" to resolve obstacles in enforcing bankruptcy declarations in Vietnam. The most notable highlight is the clear demarcation of responsibilities between Enforcement Officers and Asset Management Practitioners, alongside strict timelines for asset verification and payment.

For businesses currently undergoing bankruptcy procedures, staying updated on regulations regarding bankruptcy costs and asset return procedures will optimize rights and mitigate legal risks. If you encounter difficulties or require deeper consultancy on the Law on Recovery and Bankruptcy, please contact specialized legal counsel for timely support.

 

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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