On December 11th, the National Assembly passed the Law on Bankruptcy Recovery with nearly 90% of delegates voting in favor. The new law prioritizes the application of pre-bankruptcy recovery procedures, aiming to ensure that the handling of struggling businesses and cooperatives is carried out promptly and transparently, thereby optimizing asset value and limiting chain failures in the economy .
According to the law, the State will implement various support policies regarding taxes, fees, credit, interest rates, and land to help struggling businesses recover, restructure, or cease business operations in an orderly manner. Costs related to the recovery or bankruptcy process will be paid from the asset value of the business or cooperative.
A notable new feature is that the State budget is allowed to advance bankruptcy costs in certain special cases. Specifically, businesses and cooperatives may be subject to a simplified bankruptcy procedure when they no longer have assets or have assets but cannot sell them to cover necessary expenses. The advanced funds will be reimbursed as soon as the liquidation of assets generates revenue.
The law also clearly stipulates the responsibilities in cases where a bankruptcy petitioner acts dishonestly. In such cases, the individual or organization involved must bear all costs incurred during the bankruptcy proceedings.
The government will advance bankruptcy costs for businesses that have run out of money (Photo: DT).
According to the National Assembly Standing Committee, current legislation does not clearly specify the source of advance payment for bankruptcy costs when the applicant is an employee, a trade union, or when the enterprise no longer has assets. This has become a "bottleneck," causing many bankruptcy cases to drag on due to a lack of funds to pay for mandatory activities such as insolvency administrators, asset liquidation, or auditing. The newly enacted law aims to resolve this issue.
Regarding the expedited bankruptcy procedure, the law stipulates that within 10 days of receiving the application, the judge must decide whether to apply this procedure. The processing time under the expedited procedure is only half that of the normal procedure. In cases where the creditors' meeting agrees to apply the bankruptcy procedure but the enterprise no longer has assets to pay the advance costs, the court may declare the enterprise or cooperative bankrupt within 30 days.
The Bankruptcy and Recovery Act will officially come into effect on March 1, 2026.
Source: https://dantri.com.vn/kinh-doanh/nha-nuoc-tam-ung-chi-phi-pha-san-cho-doanh-nghiep-kho-khan-20251215074452417.htm
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