Amidst the intricate landscape of bankruptcy proceedings, the meticulous management of a business or cooperative’s assets becomes pivotal, necessitating a meticulous adherence to legal obligations. It is imperative that these assets are handled with utmost care, meticulously following the directives outlined by the competent civil execution authority. Therefore, acquiring a comprehensive understanding of the procedural framework for efficient asset management within the boundaries of bankruptcy proceedings is of paramount importance. This inquiry not only delves deep into the core of the asset management process but also navigates the complex procedural intricacies and legal framework that govern the obligations and responsibilities of the parties involved. In this exploration, we will delve into the precise steps and principles guiding the handling of these during bankruptcy proceedings, providing valuable insights into this critical facet of the bankruptcy process.
Question:
In the case where the civil enforcement authority is executing a Court judgment or decision, in which the enterprise or cooperative is the party responsible for enforcement and the assets secured for the performance of the obligation of the enterprise or cooperative are the assets of a third party (not the assets of the enterprise or cooperative). Therefore, after the Court handles bankruptcy proceedings for the enterprise or cooperative, does the civil enforcement authority have to temporarily suspend/suspend the enforcement of the assets secured by the third party?
Answer:
According to the provisions of Clause 1, Article 41 of the Law on Bankruptcy , the civil enforcement authority must temporarily suspend the enforcement of civil judgments against the assets of the enterprise or cooperative that is responsible for enforcement, except for judgments or decisions compelling the enterprise or cooperative to compensate for loss of life, health, reputation, or payment of wages to employees. Therefore, in the case where the enterprise or cooperative is unable to pay, the party responsible for enforcement, the civil enforcement authority must temporarily suspend the enforcement of civil judgments against the assets secured for the performance of the obligation of the enterprise or cooperative without distinguishing whether those assets belong to the enterprise or cooperative.
If the obligation to enforce the judgment concerns assets of a third party related to bad debts of credit institutions, the resolution shall follow Clause 2, Article 7 of Resolution No. 42/2017/QH14 dated June 21, 2017, and Clause 2, Article 8 of Resolution No. 03/2018/NQ-HDTP dated May 15, 2018, from the Judicial Council of the Supreme People’s Court.
MLF is always available to offer assistance in understanding the procedures with authorities.
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