Identifying the correct competent authority to handle the case is the most important step in ensuring that the business recovery or bankruptcy process proceeds according to legal procedures. According to Article 5 of the Bankruptcy Recovery Law 2025 (Law No. 142/2025/QH15), the jurisdiction of the courts in resolving bankruptcy cases has undergone groundbreaking changes, particularly the emergence of regional court models to enhance specialization. This article will provide detailed guidance for businesses to accurately identify where to file their application for bankruptcy proceedings.
Overview of the system of competent courts
From the beginning of 2026, the authority to handle rehabilitation and bankruptcy cases will no longer be rigidly divided according to administrative boundaries but will be concentrated in specialized units. This shift will help expedite the resolution of complex cases and ensure consistency in the application of the provisions of Law No. 142/2025/QH15 nationwide.
Delegation of authority based on the scale and nature of the case.
The new jurisdictional structure is designed to clearly separate cases with foreign elements or unique characteristics from ordinary local cases. Understanding this division of authority helps businesses avoid having their bankruptcy cases rejected due to filing with the wrong court jurisdiction, a common mistake that causes many entities to miss the crucial period for implementing financial rescue measures.
The significance of reforming authority
The new regulations on the jurisdiction of the courts in bankruptcy proceedings, as outlined in Law No. 142/2025/QH15, aim to achieve the following strategic objectives:
- Enhance the expertise of the specialized panel of judges, who currently focus solely on business recovery and risk management.
- The time taken to process and resolve cases has been significantly reduced thanks to the centralized processing procedures in key economic zones.
- Ensure smooth and effective coordination between the Court, the Receivers, and the corresponding civil enforcement agencies.
Jurisdiction of the Regional People's Court to resolve bankruptcy cases
Currently, the regional people's court is the key unit, exercising the court's jurisdiction to resolve bankruptcy cases involving businesses and cooperatives with their headquarters located within its jurisdiction.
The subject falls under the jurisdiction of the District Court.
The majority of small and medium-sized enterprises and cooperatives operating purely domestically will conduct their bankruptcy proceedings within this court system. According to the detailed regulations in Article 5, the jurisdiction of the regional courts to resolve bankruptcy cases includes the following groups of entities:
- Businesses and cooperatives whose business registration or head office address is located within the administrative boundaries managed by that regional court.
- Ordinary business recovery cases, not included in the category of special cases, fall under the jurisdiction of the Provincial People's Court.
- Cases requiring resolution of debt disputes or handling of assets directly related to the bankruptcy proceedings of legal entities fall within the scope of responsibility.
How to determine the appropriate district court
To accurately determine the appropriate court jurisdiction for their bankruptcy case, applicants should refer directly to their Business Registration Certificate. In situations where a business has multiple branches in different locations, the court with jurisdiction remains the one located at the legal entity's head office. This regulation aims to ensure consistent and centralized management of the creditor list and asset inventory, avoiding overlap between judicial bodies.
Jurisdiction of provincial-level People's Courts and specific cases
For cases of high complexity, large asset size, or widespread impact across multiple localities, the bankruptcy jurisdiction of the courts will be elevated to the provincial or centrally-administered city level to ensure objectivity.
Cases that require resolution at the provincial level.
Based on Law No. 142/2025/QH15, provincial-level People's Courts will directly handle and exercise their jurisdiction in resolving bankruptcy cases in the following specific situations:
- A bankruptcy case involves a foreign element, for example, creditors, debtors, or significant assets located abroad.
- Businesses and cooperatives often have headquarters or branches spread across many different districts within the same province, but the case is extremely complex.
- Specific entities such as credit institutions and insurance companies, after completing special control procedures from specialized state agencies.
- Cases that the regional People's Court finds to be beyond its professional capacity to handle and has submitted a written request to the provincial court to take over the case for resolution.
Regulations regarding the transfer of authority
In certain emergency situations, a higher-level People's Court has the right to take over a case from a lower-level court for handling in order to ensure fairness or when the case has a profound impact on the economic security of the entire locality. All procedures regarding the change of jurisdiction for bankruptcy proceedings must be carried out in writing and publicly notified to all relevant parties to ensure transparency.
Summary table of jurisdictional delineation according to Law 142/2025/QH15
Below is a summary table to help administrators and creditors easily compare the jurisdiction of the Court in resolving bankruptcy cases corresponding to each type of entity:
| Type of Court | Main parties involved | Characteristics of authority |
|---|---|---|
| Regional People's Court | Domestic small and medium-sized enterprises and cooperatives | Based on the registered address of the head office. |
| Provincial People's Court | Large, international businesses | Having shareholders, assets, or creditors located abroad. |
| Provincial People's Court | Credit institutions, insurance, and reinsurance | Occupations with high systemic financial risk. |
Note that misidentifying the appropriate court jurisdiction for bankruptcy proceedings can lead to the case being returned, resulting in the applicant not receiving immediate reimbursement of advance payments and delaying the business recovery process.
Important notes when filing a petition in court.
To ensure a smooth filing process, parties should pay attention to several technical factors directly related to the court's jurisdiction in bankruptcy proceedings to avoid unnecessary administrative errors.
- Always stay updated on the new administrative boundary list: From 2025, the court system has been reorganized by region, so it is necessary to check the latest list of regional People's Courts before submitting documents.
- Prepare documentation proving the registered office: Attach certified copies of legal documents confirming the territorial jurisdiction of the court where the application is filed.
- Closely coordinate with the Receivership system: As soon as the Court confirms its jurisdiction and issues a decision to accept the case, the business needs to proactively work with the Receivership to conduct an inventory of assets as required by the local judicial authority.
Conclude
Understanding the jurisdiction of the courts in bankruptcy proceedings in 2026 not only helps businesses comply with legal procedures but is also key to protecting their legitimate rights in the shortest possible time. The groundbreaking innovations in Law No. 142/2025/QH15 on the specialized court system are gradually becoming a solid foundation, helping businesses' recovery process become more transparent and effective.
To learn more about the new mechanisms of the law, please refer to the following analytical article. New points in the Bankruptcy Recovery Law 2025 The aim is to develop the most comprehensive response strategy for their organization.
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