In today's volatile economic climate, bankruptcy should not be viewed as a bitter failure, but rather as a civilized legal tool to "rescue" business owners from inescapable debt spirals. Instead of avoiding it and facing the risk of asset freezes or business bans, proactively seeking professional advice will help you safely close the old door and open the door to sustainable rebirth. This article will analyze the most accurate legal roadmap according to the current Bankruptcy Law and the groundbreaking new points in 2025 to help businesses optimize their rights and protect their personal reputation.
Understanding bankruptcy consulting services in the new era.
Bankruptcy consulting services are more than just business closure procedures. They are a strategic solution that helps business owners protect their personal assets, minimize legal liability, and seek recovery opportunities through specialized procedures. In the modern era, this service acts as a filter, helping the market eliminate entities that are no longer viable, while freeing up resources for other promising businesses to thrive. Legally sound advice helps businesses avoid civil and criminal penalties related to asset disposal or financial fraud.
Why do businesses need bankruptcy consultants this year?
Bankruptcy is an extremely complex legal process, requiring a deep understanding of the 2014 Bankruptcy Law and important updates from the 2025 Bankruptcy and Rehabilitation Law. According to Article 5 of the 2014 Bankruptcy Law, when a business becomes insolvent (fails to fulfill its debt payment obligations within 3 months of the due date), the relevant parties have the right and obligation to file a petition for bankruptcy proceedings.
Protecting the rights of business owners and managers.
When a business becomes insolvent, the role of the manager becomes highly sensitive legally. According to Article 37 of the 2014 Bankruptcy Law, the manager is responsible for the accuracy of the documents and data provided to the Court. Bankruptcy consulting experts will assist you:
- To prevent the risk of being banned from holding management positions for 1 to 3 years as stipulated in Article 130 of the Bankruptcy Law if they violate the obligation to file the application on time.
- Optimize the distribution of assets according to the legal priorities stipulated in Article 54 of the Bankruptcy Law, avoiding disputes arising between the parties involved.
- Ensuring transparency in financial reporting is crucial to avoid being charged with intentionally violating state regulations on economic management, resulting in serious consequences, as stipulated in the Criminal Code.
Minimize pressure from creditors.
The pressure from overdue debts often causes business owners to lose their composure. The intervention of a consulting firm helps to mediate these relationships based on the regulations in Chapter VI concerning Creditors' Meetings:
- Business representatives negotiate directly with creditors to find common ground and approve a recovery plan at the Creditors' Meeting (according to Articles 79 to 81 of the Bankruptcy Law).
- Develop a viable business recovery plan based on realistic market conditions to convince creditors to grant more time.
- Prevent illegal debt collection practices or excessive pressure on the personal lives of management through a mechanism that suspends debt settlement from the moment a bankruptcy proceedings decision is made.
Save time and operating costs.
A bankruptcy filing rejected due to failure to meet the requirements of Articles 26 and 28 of the Bankruptcy Law can be extremely costly. Professional services can help:
- Shorten the processing time of cases at the competent People's Court (provincial or district level depending on size) by having a complete and well-prepared application file from the start.
- Avoid procedural errors related to the notification of the listing of creditors (Article 67) and debtors (Article 68) that could hinder the asset liquidation process.
Common types of bankruptcy advisory services
Depending on their financial situation and the wishes of the management team, businesses can choose different consulting packages that comply with current regulations.
Consulting on business recovery procedures.
This is a top priority in the 2025 law revision roadmap. According to Chapter VII of the 2014 Bankruptcy Law, if the recovery plan is approved by the creditors' meeting and recognized by the court, the enterprise has a maximum of 3 years to implement the recovery (except in cases of extension under Article 89). Experts will focus on assisting enterprises in developing detailed recovery plans and managing cash flow under the supervision of the Receiver.
Voluntary bankruptcy counseling
According to Article 5 of the Bankruptcy Law, the business owner or their legal representative is obligated to file a petition for bankruptcy proceedings when they believe the business is insolvent. This service helps fulfill the obligation of "voluntary filing," mitigating the individual legal liability of the management team.
Compulsory bankruptcy counsel
This service assists businesses when creditors (under Article 5, paragraph 1) or employees (under Article 5, paragraph 2) file claims. Experts will help businesses review debts, determine the legality of the claims, and participate in negotiations to protect the business's legitimate rights in court.
Simplified bankruptcy consulting for small and medium-sized enterprises.
This applies to specific cases as stipulated in the Bankruptcy and Recovery Law 2025 and guided by Resolution 03/2016/NQ-HĐTP. This process helps businesses minimize unnecessary steps if they no longer have assets or their assets are insufficient to cover bankruptcy costs (according to Article 105 of the Bankruptcy Law).
The process for implementing professional bankruptcy consulting services.
A standardized process in 2025 will strictly adhere to the timelines stipulated in the Bankruptcy Law to ensure the supremacy of the law.
Below is a summary of the key timelines and procedures that the consulting service will handle:
| Legal phase | Prescribed time limit (Bankruptcy Law 2014) | Main content to be implemented |
|---|---|---|
| Check the application | 3 working days (Article 30) | The court checks the validity of the submitted documents. |
| Pay the advance payment. | 15 days (Article 32) | Businesses fulfill their financial obligations at the Enforcement Department. |
| Decision to open proceedings | 30 days from the date of receipt of the application (Article 42) | The judge decides whether or not to initiate bankruptcy proceedings. |
| Create a list of creditors. | 30 days from the date of posting (Article 67) | The receiver compiles and publicly discloses a list of creditors and debtors. |
| Creditors' meeting | No more than 20 days from the date the list ends (Article 75) | Organize discussions on options for restoration or liquidation. |
After understanding the timeline, the actual process of providing bankruptcy consulting services includes the following steps:
Step 1: Assess financial health and legal risks
Experts will examine transactions conducted within 6 to 18 months prior to the start of bankruptcy proceedings to identify transactions at risk of being invalidated under Article 59 of the 2014 Bankruptcy Law. This helps businesses proactively recover assets and avoid accusations of asset concealment.
Step 2: Complete the application for initiating bankruptcy proceedings.
The service assists in drafting applications according to the Supreme People's Court's template, including: audited financial statements, a detailed list of assets as per Article 28, and a list of creditors with clearly stated addresses. A detailed explanation of the objective and subjective reasons leading to the insolvency is mandatory for the judge to have grounds to accept the case.
Step 3: The representative works with the Court and the Receiver.
The consulting firm, acting on behalf of the business, coordinates with the Bankruptcy Administrator or the asset management company to liquidate assets. According to Article 16 of the Bankruptcy Law, the Bankruptcy Administrator has the right to inventory and supervise business operations, and the consulting expert will help the business exercise its rights and obligations correctly during this sensitive period.
Step 4: Attend the creditors' meeting and implement the resolution.
At the creditors' meeting, the presence of a bankruptcy counsel helps ensure that the participation and voting requirements stipulated in Article 79 are properly met. If recovery is not possible, the service will oversee the liquidation of assets according to the priority order in Article 54, ensuring the rights of employees and the state are protected.
Reference price list for bankruptcy consulting services in 2025
To help businesses prepare financially, here is a summary of the basic costs involved in bankruptcy proceedings:
| Service category | Reference fee (VNĐ) | Note |
|---|---|---|
| Initial legal review consultation | 5,000,000 – 10,000,000 | Assess risk and solvency. |
| Complete bankruptcy filing services | 15,000,000 – 30,000,000 | This includes applications, reports, and lists of creditors. |
| Representative working at the Court | 20,000,000 – 50,000,000 | Depending on the location and the size of the debt. |
| Consultation on recovery options | 30,000,000 – 70,000,000 | Develop a roadmap for business restructuring. |
| Court fees and advance payment to the Receiver. | According to government regulations | Submit directly to the Enforcement Agency. |
Please note that the prices above are for reference only as of 2025. Actual costs will be adjusted flexibly based on the following factors:
- The total value of the company's assets and total outstanding liabilities.
- The number of creditors and the complexity of debt reconciliation.
- Location of the company's headquarters and the court with jurisdiction to handle the case.
New points in the 2025 bankruptcy law regulations that businesses need to be aware of.
Staying up-to-date with the latest changes from the draft amendments and roadmap for the Bankruptcy and Recovery Law of 2025 is a core element of a professional service.
Prioritize rehabilitation procedures over declaring bankruptcy.
According to the Legal Journal and summary reports of the Supreme People's Court, the goal of the new law is to shift from "killing" businesses to "saving" them. The courts will apply more flexible interim emergency measures to maintain the supply chain for businesses in the recovery phase.
Change the priority order for asset payments.
A key emphasis in the 2025 law is the absolute protection of workers' rights. Social insurance and benefit debts are given priority on par with bankruptcy costs, ensuring social security before settling debts with banks or unsecured creditors.
Regulations on bankruptcy involving foreign elements
The 2025 Act adds new chapters on international judicial assistance. This addresses conflicts of law when businesses have assets or liabilities in multiple countries, based on the UNCITRAL Model Law on Cross-Border Insolvency.
Criteria for selecting a reputable bankruptcy consulting firm.
Due to the specific legal nature of the business, companies need to select partners based on transparent standards:
- The legal team must have in-depth experience in corporate finance and bankruptcy law, and possess professional working relationships with courts and enforcement agencies.
- The consulting firm must have licensed practicing bankruptcy administrators, as prescribed by the Ministry of Justice, who can directly participate in coordinating the case.
- Service fees must be determined based on the complexity of the case in accordance with the Circular regulating the fees for Receivers and Court fees, and no additional charges outside the contract may apply.
Frequently Asked Questions about Bankruptcy Counseling Services
Below is a summary of answers to the most common concerns of businesses:
How much does it cost to hire bankruptcy counsel?
This cost includes court fees, advance payment for the Receiver's fees (as stipulated in Decree 22/2015/ND-CP), and legal service fees from the consulting firm. The total cost typically varies based on the volume of assets to be inventoried and the number of creditors participating in the reconciliation.
After a business goes bankrupt, can the owner establish a new company?
According to Article 130 of the 2014 Bankruptcy Law, you are only prohibited from filing a bankruptcy petition if you are the owner of a private enterprise or a partner in a partnership and fail to do so as required. If you follow the correct procedures and there are no signs of criminal violations, you have the right to establish a new business after the decision to suspend the bankruptcy proceedings or declare bankruptcy has been executed.
How long does the bankruptcy process take?
Although the law specifies concrete timelines (approximately 6-9 months for the basic steps), the actual time often extends due to asset valuation and auction processes. However, with the support of professional services, these stages can be optimized in terms of administrative procedures.
Conclude
Bankruptcy consulting services act as a legal "lifeline," helping businesses navigate crisis periods safely and professionally. Understanding the law and choosing the right consulting partner not only reduces psychological burdens but also opens opportunities for restructuring and embarking on a more sustainable business journey in the future.
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Content production is overseen by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, and financial consulting.
