The issue of debt collection is of concern to many businesses, in parallel with the implementation of commercial business activities. Through the process of conducting activities in the specialized field of debt collection for many domestic and foreign customers and partners, we have realized that this work needs to be deployed strategically and clearly in each stage to bring the highest efficiency, as expected by the business. Therefore, through this article, BKC Law would like to present an effective debt collection process based on practical experience and professional knowledge for your reference and consideration.
I. Debt collection methods of enterprises
Phase 1: Negotiation and mediation to recover debt
Request for payment of debt in writing/demand letter to the debtor
Platforms and technological devices such as email, telephone and text messages are flexible, fast and convenient in conveying information. Therefore, in the process of conducting business activities, most businesses prioritize using these means for the purpose of communicating and exchanging with customers. However, due to the nature of debt collection requiring strategy, accuracy and certainty at each stage, choosing the form of sending documents and official dispatches is preferred.
A payment request document is not only an effective way to demonstrate the flexibility but also the determination of the Enterprise towards the debtor. In addition, this document is also the basis for the enterprise to initiate a lawsuit, determine the time to initiate a lawsuit and create an advantage in the case of dispute resolution at a competent authority.
.
Request for debt settlement by negotiation
In addition to sending documents, businesses can also consider conducting step-by-step negotiations with the Debtor so that their requests are made clearer and stronger in the following stages:
Step 1 – Reminder: At this stage, the use of means of communication such as email, text messages, and telephone to express a gentle, yet firm attitude by extending the payment time in a specific and reasonable manner to request the Debtor to perform the obligations signed in the contract. The extension period may vary depending on the nature of the industry and the trading practices between the parties. However, in normal commercial activities, about 1 week is considered appropriate.
Step 2 – Urgence: After the extension period has passed and the payment has not been made by the Debtor, the Enterprise needs to increase the frequency of reminders to emphasize the Debtor’s responsibility to pay, while still maintaining a goodwill attitude. In addition, negotiation measures can be taken by the Enterprise to request cooperation and coordination in resolving the work.
Step 3 – Warning: After the stages have been completed and there is still no positive action from the Debtor, at this point, the Enterprise can take strict and strong warning measures. According to the provisions of the contractual agreement between the parties and according to civil and commercial law, the Party has the right to request the Debtor to comply with its payment obligations; in case of non-compliance, the Debtor may be liable for the legal consequences that arise. The Enterprise needs to clearly indicate the legal consequences to clarify the determination in the payment request document at this stage. In addition, this document has legal value when the Enterprise decides to file a lawsuit to request the Debtor to comply with its obligations at a competent court or arbitration center.
As mentioned, debt collection is a job that requires a clear strategy, so the goals and meanings of each stage need to be determined by the Enterprise. In stage 1, the Enterprise’s skillful but no less close and strict attitude can make it easier to cooperate in debt payment with the Debtor. On the contrary, with bad debts, this will be the basis for creating advantages for carrying out the next stages. In addition, through the above steps, the Enterprise can also collect information and find out the reasons for late payment as well as the financial capacity or debt repayment ability of the Debtor. Thanks to this, the Enterprise can better understand the Debtor’s business activities and from there plan appropriate measures to recover the money in the shortest time.
Stage 2: Proceed to file a lawsuit at Court or Arbitration.
After negotiations have been carried out without any results, the Enterprise may decide to take a more drastic measure, which is to file a lawsuit at a court or a competent arbitration center. Depending on the complexity, the time to implement this measure may last from 03 to more than 12 months.
Theo quy định, để giải quyết tranh chấp tại tòa án hoặc trung tâm trọng tài, ba yếu tố sau cần được đồng thời đáp ứng: (i) Khoản nợ giữa các bên tồn tại và Bên nợ không tuân theo nghĩa vụ thanh toán đã thoả thuận, dẫn đến việc quyền lợi hợp pháp của Doanh nghiệp bị xâm phạm; (ii) Tòa án hoặc trung tâm trọng tài thụ lý để giải quyết vụ việc theo luật Việt Nam; (iii) Các bước tiền tố tụng như hòa giải, thương lượng, thông báo phải được các bên tuân theo một cách đầy đủ trước khi tiến hành khởi kiện.
II. Corporate debt collection services of BKC Law Firm
BKC Law Firm is highly appreciated by clients for its professionalism, initiative and efficiency in work. Our strength is our understanding of the practicalities of exchange and negotiation activities, as well as local legal regulations related to debt collection to apply in the legal, economic, political and cultural context of Vietnam. With the accompaniment and legal advice of lawyers with many years of experience, BKC has successfully accompanied in resolving a series of debt collection cases of various scales.
All activities related to debt collection are carried out by BKC meticulously and carefully. From contacting clients, providing legal advice, researching documents to sending debt repayment requests and participating in the payment negotiation stage or litigation, debt collection enforcement to protect the best interests of clients.
Recommendation:
The above article is intended to provide reference knowledge and is not intended to provide legal advice for each specific case. Therefore, we recommend that you consult a lawyer before using.
BKC is a reputable law firm in Vietnam and is capable of providing legal services related to Dispute Resolution. Please learn about our services and contact our legal department via email info@bkclaw.vn or Hotline 0967 333 246
Bài viết này chỉ nhằm mục đích cung cấp các thông tin chung và không nhằm cung cấp bất kỳ ý kiến tư vấn pháp lý cho bất kỳ trường hợp cụ thể nào. Các quy định pháp luật được trích dẫn trong nội dung bài viết có hiệu lực vào thời điểm đăng tải bài viết nhưng có thể đã hết hiệu lực tại thời điểm bạn đọc. Luật BKC khuyến nghị bạn luôn tham khảo ý kiến của chuyên gia/luật sư trước khi áp dụng.
0 (0) Contract drafting consulting services in Ho Chi Minh City are being strongly developed because contract drafting is an...
0 (0) The extension of work permits has different durations, however the maximum duration is 2 years. In case of...
0 (0) With the current integrated economy, the granting of work permits to foreigners is of great concern to many...
41 Rockets, Binh Tri Dong B, Binh Tan District, Ho Chi Minh City.
info@bkclaw.vn
0901 3333 41
9th Floor, Diamond Plaza Building, 34 Le Duan, Ben Nghe Street, District 1, Ho Chi Minh City.
info@bkclaw.vn
0901 3333 41