Q&A concerning Judgement Enforcement

April 10, 2018 Dispute Resolution

Q: At what time does a party have the right to request enforcement of judgment?

A:  In principle, the judgment and decision can only be enforced after entering into force. However, in some special cases relating to matters of support, salary payment, work compensation, severance allowance, job loss allowance, allowance for loss of work capacity, compensation for life and health damage, mental damage, reinstating employees; or implementing temporary emergency measures, such judgment may still be enforced upon request, even though the judgment or decision has not yet entered into force and it is possible that it can be appealed and protested.

Q: How much time does a person have to request enforcement of the judgment? Does this right expire?

A:  The person who has the right to request the enforcement of a judgment must make a request within 05 years from the effective date of judgment/decision. After this time, if no request for judgement enforcement is made, such person shall lose his/her right, except in cases of objective obstacles or force majeure.

Q: What if the court decides that party A is required to fulfill its payment obligation towards party B in several installments with different terms, but after the end of the 1st term, party A has not fulfilled its payment obligation? Does party B then have the right to request the civil judgment enforcement authority for a decision enforcing payment for the entire remaining amounts?

A:  No. The request can only be made with regard to the installments which are due pursuant to the judgment. The civil judgment enforcement authority can only issue a decision enforcing payment of delinquent installments; except for cases where the parties agree on a one-time payment of all obligations with different terms (in this event, the civil judgment execution authority can issue a decision enforcing full payment of the judgment).

Q: In the event that a judgment debtor makes a payment, will such payment be offset first against the late interest or the principal?

A:  Unless otherwise agreed by the parties or provided in the judgment, the money collected from the judgment debtor shall be used to pay the principal frst; then, after fully paying the principal, the remaining amount will be used to pay the interest arising from late payment.

Q: How long is the judgment debtor allowed to voluntarily fulfil its obligations under the judgment?

A:  For 10 days following the date the judgment debtor receives or is duly notified of the decision on judgment enforcement, the judgment debtor will be allowed to voluntarily fulfill its obligations under such decision. If the judgment debtor fails to fulfill its obligations within the 10-day time period, the judgment enforcement agency can apply coercive measures against the judgment debtor.

Q: When will the judgment enforcement agency commence verifying the financial situation of the judgment debtor in order to enforce the judgment?

A:  The deadline for the judgment enforcement agency to start such process is 10 days after the judgment debtor fails to fulfill its obligations within the voluntary enforcement period mentioned above.

–   Written by LE & TRAN | Vietnam’s Premier Business Litigation Firm