Debt Collection

Debt Settlement Lawyer and Debt Recovery Law Firm in Vietnam

In Vietnam, businesses or individuals who wish to recover outstanding debt from debtors often face significant challenges. This is because the Vietnamese legal system is complex, and regulations may undergo changes, making it difficult for the layperson to navigate it without professional assistance. To expedite processes and allow creditors to recover the money owed to them in a timely and efficient manner, debt collection lawyers and debt recovery law firms become essential resources of critical information.

What Is Debt Collection And Settlement?

Debt collection and debt settlement are two different ways to deal with outstanding debt. Creditors may take legal action against debtors who fail to pay them as this inability to complete their obligations negatively affects the creditor’s rights and interests.

Debt Collection

Debt collection is the process of trying to collect payment from a debtor. Creditors may inform debtors of outstanding debts via phone calls, emails, messages or official debt collection letters issued by lawyers or law firms.

Debt Settlement

Debt settlement, on the other hand, is an arrangement between the debtor and creditor to settle the debt for less than the total amount owed. Often, this process involves the debtor offering a lump-sum payment to the creditor so that the creditor may forgive a portion of their debt.

Why Do You Need Lawyers For Debt Recovery?

The process of recovering debts can be complex, time-consuming and frustrating. Employing a lawyer to help you navigate the legal system is often necessary to maximize your chances of success.

There are a number of reasons why you might need to engage a lawyer for debt recovery, including complications such as:

  • If the debtor is located in another country;
  • If the debt is large and/or complex;
  • If the debtor refuses to repay the debt.

Lawyers can help with debt recovery by providing expert advice on your legal rights and entitlements. They can also help negotiate with the debtor on the payment terms, including amount, method or deadlines, often securing more favorable terms than you could achieve on your own. In the event that out of court negotiation is incapable of resolving debt agreements and the matter proceeds to litigation, a lawyer will be able to better represent you in court and fight for your best interests. Finally, they can offer emotional support and guidance throughout the process, helping you to stay calm and focused as you work towards the final resolution of debt recovery.

What Does A Debt Recovery Law Firm Do?

Debt settlement lawyers play a crucial role in providing a comprehensive legal assessment of your situation, enabling you to gain a thorough understanding of your rights and obligations before making decisions regarding debt recovery. A reputable debt recovery law firm can offer assistance throughout the entire debt recovery process, including initial negotiations, mediations, and even court actions or representation. Utilizing their expertise in handling pertinent documentation, debt settlement lawyers can effectively safeguard your best interests and strengthen your position through persuasive arguments, ensuring that you and your company are well-protected.

Although the National Assembly of Vietnam passed an Investment Law in January 2021 to ban debt collection services, they are still widely depended upon to collect debts. However, engaging third-party debt collection agencies carries inherent risks, as their methods of debt recovery may result in potential liabilities if they employ heavy-handed and intrusive tactics.  Working with certified attorneys from debt recovery law firms in Vietnam mitigates risks because these firms adhere to strict rules of professional conduct. All actions taken by attorneys are in accordance with the law, ensuring compliance and protection of your interests.

What Is Vietnam’s Debt Recovery Law Like?

In Vietnam, debt recovery is governed under Vietnam’s legal normative documents system with specific articles dealing with debt to be located in the Law on Credit Institutions, the Law of Bankruptcy, the Civil Code and others. Generally, these laws and requirements are designed to protect the rights of creditors and debtors alike. It also sets out the legal procedures necessary for recovering debts and addresses penalties in cases of non-payment.

Procedures of Debt Recovery

Vietnamese law provides two main debt collection methods: negotiation and litigation. Debtors are typically first contacted by the creditor, who will attempt to negotiate a payment plan. If the debtor does not respond to the creditor’s request or they are incapable of reaching an agreement, the creditor may file a lawsuit with the court. Once the case is filed, the court will set a hearing date and notify the affected parties.

At the hearing, each party will have an opportunity to present their case and argue their position. At this stage, it is ideal for both parties to have lawyers representing them as this will give them access to knowledge on court processes and legal requirements.

The court will then issue a decision, which may require the debtor to pay the debt in full or take other actions. Sometimes, debtors may be ordered to pay damages or interest in addition to the debt itself. Additionally, debtors who fail to comply with a court order may be subjected to enforcement actions, such as wage garnishment or property seizure.

Why Engage Debt Settlement And Recovery Lawyers From Le & Tran?

At Le & Tran, we understand that debt can be a difficult and stressful thing to deal with. Hence, we are always committed to helping you recover your debts quickly. With extensive experience in managing debt settlement and recovery, our team of highly qualified lawyers is adept at debt recovery proceedings and can help resolve these issues professionally and in a cost effective manner. By working with you to develop a personalized plan, you can rest assured that we will handle each case according to your unique circumstances and current legal requirements.

Beyond debt settlement and recovery, the attorneys at our law firm are also well-versed in a variety of legal considerations and services, including but not limited to, tax legal consulting or resolving construction disputes and shareholder disputesContact Le & Tran today to schedule a consultation for debt recovery solutions and other services that best address your concerns.