Advance payment of bankruptcy costs for businesses that have run out of money.

VTV.vn - From March 1, 2026, the State will advance bankruptcy funds to businesses that have run out of money, and then reimburse the budget once the assets are sold.

Advance payment of bankruptcy costs for businesses that have run out of money - Illustration

From March 1, 2026, the State will advance bankruptcy funds to businesses that have run out of money, and then reimburse the budget once the assets are sold, according to the Bankruptcy and Recovery Law recently passed by the National Assembly .

The law comprises 88 articles, stipulating the principles, procedures, and processes for resolving cases of enterprise and cooperative/cooperative union rehabilitation and bankruptcy; the duties and powers of those conducting rehabilitation and bankruptcy procedures; and the rights and obligations of those participating in rehabilitation and bankruptcy procedures.

The Law on Rehabilitation and Bankruptcy applies when resolving cases of business and cooperative rehabilitation and bankruptcy; if this Law does not provide for such cases, the provisions of relevant laws shall apply.

The provisions on recovery procedures and simplified recovery procedures of this Law do not apply to credit institutions, insurance companies, and reinsurance companies.

In the report on the acceptance, revision, and explanation of the draft Law, National Assembly Standing Committee member Phan Van Mai stated that the National Assembly Standing Committee accepts and revises the name of the Law to "Law on Bankruptcy and Recovery" in accordance with the majority opinion of National Assembly deputies.

Regarding the case where the state budget covers bankruptcy costs and advances bankruptcy costs (Article 20), practical experience in resolving bankruptcy cases at the People's Courts shows that bankruptcy costs in cases where the state budget covers them are not significant.

In addition, the Bankruptcy Law of 2014 (current law) stipulates that the advance payment of bankruptcy costs is not required (exempt) in cases where the applicant requesting bankruptcy proceedings is an employee, a trade union, or in cases where the enterprise or cooperative no longer has assets.

However, the 2014 Bankruptcy Law does not specify a source of funding to ensure advance payment of bankruptcy costs in cases where this exemption applies, leading to a bottleneck in resolving bankruptcy cases due to the lack of funds to cover bankruptcy expenses.

Therefore, to resolve practical difficulties in determining the source of payment for bankruptcy costs in cases where advance payment of bankruptcy costs is not required (exemption), Clause 3 of Article 20 of the draft Law has been revised to ensure that advance payment of bankruptcy costs will be guaranteed by the state budget in cases where the applicant requesting bankruptcy proceedings is an employee, trade union, tax authority, social insurance agency, or in cases where the enterprise or cooperative no longer has assets (or has assets but cannot liquidate or recover them, or has assets but not enough to pay advance bankruptcy costs or settle bankruptcy costs).

In this case, the advance payment for bankruptcy costs will be immediately reimbursed to the state budget upon the sale of the assets of the enterprise or cooperative.

Source: https://vtv.vn/tam-ung-chi-phi-pha-san-cho-doanh-nghiep-khong-con-tien-100251212142449503.htm