Currently, due to the influence of the Covid-19 Pandemic, many production and business establishments have had to suspend operations or be forced to operate within the framework prescribed by the State. Since that affects the revenue of businesses, many businesses fall into debt and bankruptcy. Many individuals and businesses that lend money to businesses are also affected, unable to recover loans….This article informs readers about legal issues as well as procedures related to the loan. corporate debt collection.
Regulations to keep in mind when carrying out business debt collection procedures
Regulations on interest rates under the 2015 Civil Code are as follows:
The loan interest rate is agreed upon in the loan contract between the two parties.
If the parties have an agreement on the interest rate, the agreed interest rate must not exceed 20%/year of the loan amount, unless otherwise provided by other relevant laws.
In case the agreed-upon interest rate exceeds the specified limit interest rate, the excess interest rate will not take effect.
In case the parties have an agreement on the payment of interest, but it is not clear what the interest rate is and there is a dispute over the interest rate, the interest rate shall be determined equal to 50% of the limit interest rate specified above at the time of payment. pay.
Regulations on money and assets under the loan contract:
The property loan contract is an agreement between parties whereby the lender delivers the property to the borrower; when it is due, the borrower must return to the lender property of the same type in the correct quantity and quality and only pay interest if so agreed or prescribed by law.
Loan assets can be money, gold, or other assets.
Common forms of corporate debt collection
- Conduct agreement, renegotiate with the enterprise on the method, method, and time of debt repayment
- ettlement through commercial arbitration if the parties agree
- Settlement using lawsuits in court
Procedures for initiating lawsuits for debt collection
Prepare petition documents:
- Petition
- Loan contract or documents showing the borrowing
- Notarized copy of ID card and household registration photo
- Certificate of residence of the borrower
- Other relevant documents
Proceed to apply to the Court where the defendant resides
Pay the court fee advance according to the Court's notice
After the court accepts the case, participates in the proceedings to settle the case at the request of the Court
Claiming corporate debt in case the business goes bankrupt
In this case, the creditor who wants to collect debts when the enterprise goes bankrupt must be on the list of creditors of the bankrupt enterprise. If the assets of the business are not enough to pay off all the debts, according to the regulations, the creditors will be paid the debts in proportion. The payment shall be made according to the order of priority for debt payment specified in the Bankruptcy Law.
Illegal debt collection methods to avoid
- Hiring the subject to perform threatening acts to put pressure on the debtor such as throwing paint, threatening to use force...
- Arbitrarily appropriating the debtor's property to assign debt, is illegal
The above acts are illegal, depending on the seriousness of the violation, those who commit the above acts may be prosecuted for penal liability.
Above is legal information and issues related to business debt collection procedures. For more specific advice to ensure their interests, customers can immediately contact NPLaw. With a team of experienced lawyers, NPLaw will help customers quickly solve the case, ensuring the interests of customers.
