CONDITIONS TO SUE DISPUTES OF DEBT COLLECTION

Disputes of debt collection or property rights are common types of disputes and easily encounter difficulties in the resolution process. In particular, the debt collector has the right to request assistance from the Court as one of the legal forms of dispute resolution. However, this process also requires meticulousness and compliance with legal conditions and regulations.

1. Conditions on the Court’s authority to resolve disputes of debt collection

Pursuant to the provisions of the 2015 Civil Procedure Code, debt collection disputes fall under the jurisdiction of the Court where the plaintiff filed the lawsuit.

a. Case 1: The involved party and the disputed property are not in the foreign country

In this case, the involved party is entitle to request the District Court where the defendant resides and works to initiate a lawsuit and request the Court to resolve.

b. Case 2: The involved party and the property disputed are in the foreign country

If the litigant is located in a foreign country or the disputed property is overseas or requires a judicial mandate to the overseas agency, he / she must request the Court of the province where the defendant resides and works to initiate a lawsuit.

2. Conditions to institute disputes of debt collection

A debt collection lawsuit includes: 

– A petition as form;

– Loan papers and other documents;

– State agency’s certification of the defendant’s residence and working address;

– Identity Card and Household Registration Card of the petitioner;

– Papers proving that the case still has statute of limitations for lawsuit (if any).

3. Conditions on the statute of limitations to institute disputes of debt collection

According to current legal regulations, the statute of limitations for initiating a lawsuit to collect debt under a contract is 3 years from the time it is determined that legal rights and interests have been violated.

Noted that, the Court only applies the provision on statute of limitations upon the request to apply the statute of limitations of one party or parties provided that this request must be made before the first instance Court makes a judgment or decision.

>> BASIS FOR DEBT RECOVERY FROM LOAN CONTRACT https://linconlaw.vn/basis-for-debt-recovery-from-loan-contract/

>> DEDUCTIBLE EXPENDITURES IN CORPORATE TAXABLE INCOME https://linconlaw.vn/deductible-expenditures-in-corporate-taxable-income/

4. The case has not been resolved by a judgment of a Court or a decision of a competent state agency

In order to ensure consistency in the trial process, if a dispute related to a debt collection lawsuit has been decided by a Court or decided by a competent state agency, the organization or individual cannot take action to sue.

If the dispute has a judgement of a Court, a decision of a competent state agency that requires debtors to pay all debts and these judgments and statements have taken effect but the borrower does not voluntarily make a refund, according to the Law on Execution of Judgments, within 5 years from the date the judgment or decision takes legal effect, the organization or individual is entitle file an application to a district-level judgment enforcement officer where the court conducts the first instance trial to request enforcement.