There are currently two popular methods in Vietnam for collecting and recovering unpaid debts. The first is litigation way, which entails submitting a motion to Court and requesting assistance. However, it is a long and time-consuming process because the Court often expects your company to make an effort to sort out your dispute with the other party, and by the time the Court issues a judgment, debtors have either sold or exchanges their assets to another business, or they’ve declared bankruptcy, leaving creditors with nothing to collect. Taking legal action to reclaim a debt should be a last resort, and often the threat of doing so is enough to make your customers pay you. If business and individuals’ usual way to recovering debt has failed, there are things to consider before beginning the legal process.
The second option is to get assistance from debt collectors or recovery companies, debt collection lawfirm in Vietnam,…and most of us are aware that the common action taken by these companies is violence. The presence of illegal, predatory lenders hurts the legitimate lending services as a whole by eroding consumer confidence and increasing public distrust. Those unrighteous will soon have no room to operate in Vietnam, because they are going to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.
In terms of debt collectors and recovery companies, lawyers, consultants, and experts from professional debt collection attorneys in Vietnam are committed to helping clients comply with the debt collection rules which can be complicated and difficult. Vietnamese law makes it illegal for third-party debt collectors who are authorized by creditors to violate or use unfair or disloyal tricks to recover debt from debtors. The Vietnamese law also prohibits debt collectors from participating in various forms of harassment, fraud, or threats, such as suggesting that they can arrest the debtors until the debt is paid off.
Debt recovery through these companies has the following benefits:
- The work is done by professionally trained lawyers who are well-experiences, operating on the basis of the law;
- Time-saving; business and individuals can avoid troublesome procedures, also shorten debt time;
- Cost-saving;
- Business and individuals can handle difficult cases such as debtors relocated/moved headquarters or hidden;
- Business and individuals can be consulted about management, preventing bad debts arising;
- Fees for legal services when needed can be reduced or exempted;
- Improving the reputation and professionalism of the business itself;
- Maintaining the respect, prestige and honor of the business; and
- Keeping the relationship and creating respect from the partner.
With the advantage of skillful, experienced staff understanding the business environment, those debt recovery law firm always offers the best solutions in guiding clients in the legal system in Vietnam.
As can be seen, debt recovery and debt recovery services are activities allowed by the law to be performed but must be on the basis of full compliance with current law provisions. That is a condition to limit behaviors from debt recovery services. In addition, the current reality also requires the need to continue to have stricter sanctions and regulations for violations in illegal debt collection, to improve the quality of debt recovery services and avoid unfortunate incidents
Re-commencement of limitation period for initiating legal action
If the limitation period has expired but it is one of the cases specified in Article 157 of the 2015 Civil Code, the lender still has the right to re-commence initiating legal action to reclaim the loaned property. Cases of re-commencement of limitation period for initiating legal action for debt collection include:
Non-applicability of limitation period
Vietnamese Civil code 2015 regulates cases in which the limitation period is non-applicable, these are:
Bases on which the lender litigates for debt recovery
If the borrower (debtor) violates the obligation of refund, the lender has the right to file a suit with the People’s Court of districts where the defendant is residing or working, applicable to defendants being individuals, or where the defendants are headquartered, applicable to defendants being agencies or organizations.