Debt is always a big issue that is faced by almost every business in the world. Thus, debt collection is of utmost importance now that it ensures the financial stability and soundness, profitability as well as financial use or business plans which determine the survival of the company. As a leading debt collection law firm in Vietnam, we truly understand that demand of Clients, especially foreign companies or persons who do business with, make transactions or offer loans to companies or individuals in Vietnam.
Following is a brief of our methods of debt collection service in Vietnam, the strength and mission of ALB & Partners Law Firm.
I. Effective debt collection methods
Collection method is a basis and criteria to evaluate a reputable debt collection law firm in Vietnam, whose measures taken must ensure legality, effectiveness and professionalism in combination of unique skills and experience of successfully resolving complicated cases.
In Vietnam, there are some commonly used ways of debt collection as follows:
1. Negotiation for debt recovery
Every effort should be made at this stage before taking other legal actions since if the negotiation is successful, the parties can still maintain a good relationship, cooperation and their brand image in the market place. The involved parties also do not have to suffer additional losses and damages to their finance, reputation, spirit, and time as a result of involving in lengthy and costly legal actions at courts or arbitration centers.
At ALB & Partners Law Firm, after we get a request from Clients in relation to debt collection in Vietnam, the following scope of work will be prepared:
- To receive relevant documents and information provided by Clients;
- To make a research and evaluation of debt records;
- To inspect and verify the legality of related debt records; review all debt documents provided by Clients to check if they have sufficient legal basis;
- To search and investigate information on the debtor: name, tax code, legal representative, shareholders, actual head office address, operational status, business activities, etc.
- To initially verify the debtor’s ability for payment, debtor’s existing assets, financial status, other debts with other creditors, etc;
- On behalf of Clients, as a law firm, to directly contact the debtor by phone or email regarding debt payment issue;
- To send a Letters of demand to the debtor analyzing all legal aspects related to payment obligations and warning legal risks and violations of law if the debtor does not fulfill the responsibility;
- To act as a law firm representing Clients to attend meetings with the debtor to discuss the payment plan, convince and request the debtor to obey the laws and agreements with Clients. Otherwise, strong legal action will be implemented in collection of the debts that can expose the debtor to serious legal problems.
2. Filing a lawsuit at a relevant Court or Arbitration Center
This is a measure commonly used when all attempts to negotiate are not successful. This will take time, efforts and costs for both debtors and creditors. We always advise Clients every legal aspect of the debt case and investigate the repayment ability of debtor before taking strong legal action in Vietnam in order to avoid the case that, even though we win the case, the debt cannot be recovered because the debtor is no longer able to pay or has gone bankrupt.
- Some scope of work in this stage commonly carried out as follows:
- Prepare a petition, evidence and documents related to the lawsuit case;
- Attend mediation sessions and hearing meetings;
- To protect the legitimate rights and interests of Clients before the Court or Arbitration Center;
- Receive a judgement from the Court or arbitral award from Arbitration Center;
- Assist Clients to prepare a petition for judgment enforcement;
- Directly work with the judgment enforcement authority in collection of debt;
- Other relevant scope of work.
3. Denouncing the debtor to the Police Department in Vietnam
Denunciation is extremely effective method because if the debt case is reported to the Police with sufficient legal grounds to determine that the debtor can be subject to criminal liability by making a fraud or scam or trying to avoid payment obligations, the debtor will immediately have serious problems or criminal sanctions which are strict enough to force him/her to pay the outstanding debt.
However, debt is considered as civil relation under the laws of Vietnam. Thus, it is not easy to transform it into a crime in accordance with the criminal laws. There should be some evidence of fraud or scam from the debtor.
Our lawyers will help Clients to analyze and identify violations of debtor to see if there are sufficient legal basis and signs for criminal liability. After that, we will directly work with the Police Department in Vietnam to immediately force the debtor to perform the payment responsibility.
II. The difference of debt collection service provided by ALB & Partners Law Firm
- Our law firm is recognized as the leading debt collection law firm in Vietnam by many Clients who are the biggest construction companies and foreign investors doing business in Vietnam. A typical case of our debt collection service that we assisted Hoa Binh Construction Group, the biggest construction corporation in Vietnam, in winning the lawsuit of debt collection against FLC Group Joint Stock Company (“FLC”), collecting a debt of more than 276 billion VND (nearly $12 million). Further information on this case can be found at our Client’s website: https://hbcg.vn/news/9875-hoabinhconstructiongroupwinsthelawsuitagainstflcgroup.html;
- We always help Clients thoroughly understand possibility of debt collection before performance of service to save their time, money and effort;
- With the motto of debt collection in an effective way, a combination of methods ranging from police, court, press, bank, etc… shall be flexibly used to bring the most beneficial results to our Clients;
- A good relationship with the government and Police enables us to promptly resolve debt cases for Clients;
- Relevant legal actions shall, at all times, be executed in a prompt manner for timely collection of debt in case debtors plan to run away or sell out all of properties;
- Our experienced lawyers will directly advise Clients and handle the case to ensure the quality of service provided to Clients.
In short, effectiveness is what Clients can find when working with us, a leading debt collection law firm in Vietnam. Should Clients have any demand for this service, please feel free to contact us via email: [email protected]