Starting from March 1, 2026, the Law on Recovery and Bankruptcy will officially take effect.
This Law stipulates the principles, order, and procedures for resolving cases of recovery and bankruptcy of enterprises and cooperatives, cooperative unions; tasks and powers of people carrying out recovery and bankruptcy procedures; rights and obligations of people participating in recovery and bankruptcy procedures.
Notably, this Law clearly stipulates the refusal or change of Judges in the process of resolving recovery and bankruptcy cases.
Accordingly, Judges must refuse to participate in resolving cases of recovery, bankruptcy or change in the following cases:
At the same time, they are participants in recovery and bankruptcy procedures; representatives, relatives of participants in recovery and bankruptcy procedures in that recovery and bankruptcy case;
Has participated as Prosecutor, Treasurer, person protecting the legitimate rights and interests of people participating in recovery and bankruptcy procedures, appraiser, price appraiser, or interpreter in that recovery or bankruptcy case;
Together in a Judge group resolving that recovery and bankruptcy case and being close relatives; has issued a decision to declare bankruptcy in that bankruptcy case;
There is clear evidence that Judges may not be impartial and objective while performing their duties.
The change of Judge is decided by the Chief Justice of the Court. In case the Judge in charge of the recovery and bankruptcy case is the Chief Justice, the change of Judge is directly decided by the higher-level People's Court. The decision to change the Judge is the final decision.
The Law on Recovery and Bankruptcy also clearly stipulates the tasks and powers of Judges in resolving recovery and bankruptcy cases.
Accordingly, the Judge has the task and authority to guide and request participants in recovery and bankruptcy procedures to collect and submit documents and evidence to prove that their requests and proposals are grounded and legal; inspect and appraise the authenticity of documents and evidence in accordance with the law.
Request agencies, organizations, and individuals to provide documents and evidence related to the recovery and bankruptcy case; decide to apply the simplified recovery procedure, decide to apply the simplified bankruptcy procedure.
Decision to appoint or change asset administrators, enterprises managing and liquidating assets.
Supervise the activities of asset administrators and enterprises managing and liquidating assets when resolving recovery and bankruptcy cases.
Decide on the implementation of enterprise and cooperative audits in necessary cases; decide on the sale of assets of enterprises and cooperatives to ensure costs for recovery, bankruptcy, and preservation of assets of enterprises and cooperatives...
