Proposal to shorten bankruptcy period from 30 days to 15 days

According to the report, the draft Law inherits appropriate provisions of the 2014 Bankruptcy Law, while amending and supplementing inadequate provisions to speed up the processing progress and improve the efficiency of bankruptcy procedures.

One of the highlights of the draft is to shorten the time to resolve bankruptcy procedures. Specifically, the time limit for inventorying assets of enterprises and cooperatives is proposed to be reduced from 30 days to 15 days; the time limit for sending debt collection notices (from 30 days to 15 days and can be extended by 15 days); the time limit for making a list of creditors is also shortened from 15 days to 7 days... In addition, the draft removes the provisions on the validity conditions of the creditors' meeting, because there are specific provisions on the conditions for passing resolutions of this meeting.

Scene of the working session on the morning of October 23. Photo: QUANG PHUC

The Draft Law also proposes to simplify the procedures for business recovery in bankruptcy settlement, such as amending the bankruptcy regulations of enterprises and cooperatives to only develop a business recovery plan after a resolution of the creditors' conference is issued; simplifying the procedure for reviewing court decisions in the direction of shortening the time for requesting a review; amending the "appeal" authority of the prosecutor's office to "recommend" the decision to open or not open bankruptcy proceedings...

Chief Justice of the Supreme People's Court Le Minh Tri reports on the Draft Law on Bankruptcy (amended). Photo: QUANG PHUC

In addition, the draft Law on Bankruptcy (amended) proposes amendments and supplements such as: perfecting regulations on the duties and powers of those conducting bankruptcy proceedings; rights and obligations of those participating in bankruptcy and rehabilitation procedures; supplementing rehabilitation as an independent procedure in the direction of prioritizing rehabilitation to create opportunities and improve the effectiveness of rehabilitation of enterprises and cooperatives.

At the same time, amend and supplement the completion of bankruptcy procedures in a flexible, quick and effective manner; supplement regulations on resolving rehabilitation and bankruptcy cases in the electronic environment...

Delegates at the morning working session, October 23. Photo: QUANG PHUC

In the review report, Chairman of the Economic and Financial Committee Phan Van Mai said that the majority of opinions agreed with separating recovery into an independent procedure, implemented before bankruptcy procedures. However, some opinions expressed concerns that this could be abused by policies to prolong recovery time, affecting the interests of related parties.

Regarding the proposed regulations on advance payment of bankruptcy costs and sources of payment of bankruptcy costs, the majority of members of the Economic and Financial Committee agreed with the regulations on funding for payment of bankruptcy costs as proposed by the submitting agency.

Chairman of the Economic and Financial Committee Phan Van Mai reports on the review of the Bankruptcy Law Project (amended). Photo: QUANG PHUC

Meanwhile, regarding the State's support mechanism for enterprises and cooperatives during the recovery period, some opinions of the Economic and Financial Committee suggested studying the provisions in the draft Law in the direction that the State will defer or postpone taxes for enterprises and cooperatives with tax debts during the recovery period or within a certain period from the date the court recognizes the Resolution of the creditors' conference approving the business recovery plan to take effect.

However, some other opinions also suggested considering regulations on criteria, bases, and foundations to determine enterprises and cooperatives eligible for recovery and the responsibilities of entities participating in recovery, to avoid taking advantage of prolonging recovery time, increasing damage to related parties compared to immediately applying bankruptcy procedures.

Regarding the content related to the sale of assets or the entire enterprise, the Economic and Financial Committee believes that this is an important solution, not only in bankruptcy proceedings but also in recovery. However, it is necessary to supplement the principled regulations and assign the Government to provide detailed instructions to ensure effective implementation.

DO TRUNG

Source: https://www.sggp.org.vn/de-xuat-rut-ngan-thoi-gian-pha-san-tu-30-ngay-xuong-con-15-ngay-post819446.html