Is it necessary to include bankruptcy costs in the Bankruptcy declaration?

The process of navigating bankruptcy is a complex and multifaceted endeavor, involving numerous financial considerations and legal intricacies. Consequently, one such question that frequently arises in this context is whether it is imperative to include bankruptcy costs within the bankruptcy declaration. This query delves into the heart of bankruptcy proceedings, touching on issues of transparency, accountability, and the financial burdens borne by both debtors and creditors. Consequently, in this exploration, we will delve into the significance of including bankruptcy costs in the declaration and examine the implications it holds for all parties involved in this critical financial process.

Question:

Understanding the financial intricacies of bankruptcy often leads to the question: Should bankruptcy costs be a part of the bankruptcy declaration?

Answer:

According to Clause 1, Point h, Article 54, and Article 108 of the Law on Bankruptcy, the asset distribution plan of the bankrupt enterprise or cooperative must unequivocally state bankruptcy costs, as stipulated in the decision to declare bankruptcy. However, the judge is not obligated to specify the exact amount of bankruptcy costs. This is because bankruptcy costs encompass expenses incurred in the process of resolving bankruptcy, including Liquidator fees, business management expenses, asset liquidation costs, auditing fees, publication fees, and other expenses as prescribed by law.

After the Court issues the decision to declare bankruptcy, the enforcement agency proceeds with the enforcement of the decision. During the enforcement stage of the decision to declare bankruptcy, the bankrupt enterprise or cooperative continues to incur bankruptcy costs. Therefore, the Court cannot determine the exact amount of bankruptcy costs at the time of issuing the decision to declare bankruptcy.

HMLF is always available to offer assistance in understanding the procedures with authorities.

Harley Miller Law Firm “HMLF”

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Phone number: +84 937215585

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