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Benefits of using a law firm's debt collection service

Benefits of using a law firm’s debt collection service

Written by TNTP LAW on . Posted in Debt Collection.

In business operations, it is almost inevitable that companies will encounter bad debts from their partners. To facilitate the handling of these bad debts, businesses may consider using debt recovery services from law firms. Below, TNTP will outline the benefits that debt collection service from law firms can provide to businesses.

1. Time and effort savings

Debt collection is a complex and time-consuming process that requires a significant amount of effort. Therefore, by using debt recovery services from law firms, businesses can save their time and effort by outsourcing the workload to professional debt recovery companies. These law firms not only have expertise in debt recovery but also provide the best advice for businesses to choose the most suitable recovery options.

2. Reduce costs

When businesses have to rely on their own resources to collect debts, it increases their budgetary burden, and using their own workforce to carry out debt recovery may not guarantee successful results due to their lack of necessary skills. This can result in unnecessary costs and negatively impact business operations and budgets.

Law firms with debt recovery expertise help businesses minimize their costs with maximum efficiency. Debt recovery professionals have the necessary skills to increase the likelihood of successful debt recovery. Additionally, with their professional skills and legal expertise, law firms can balance budgets to implement appropriate debt recovery strategies instead of pursuing expensive but ineffective measures.

3. Enhancing the ability to successfully recover debts

As mentioned above, law firms specializing in debt collection with their experience will have debt collection methods that are more suitable for the situation of each debt compared to businesses with less experience in debt collection. Along with an experienced team of lawyers and trained staff with the necessary skills, customer debt collection will be ensured by the quality and experience, and reputation of law firms.

In addition, law firms will also evaluate the status of the debts to propose appropriate solutions for businesses. Then, businesses will be able to choose measures with costs and time suitable for the case to enhance the ability to recover debts.

4. Ensuring compliance with the law

Although debt collection activities are mainly carried out by law firms, many debt collection service providers have implemented illegal measures that affect the very operation of businesses using debt collection services. To minimize this risk, businesses using debt collection services from law firms can be completely assured because law firms are operated by a team of lawyers and legal specialists with strong legal knowledge who will carry out debt collection plans that both ensure legal compliance and still bring the best benefits to the business.

Furthermore, when law firms carry out legal measures such as litigation, they will have a deep understanding of the litigation process to assist businesses in preparing documents, records, and documents to serve the litigation process effectively. At the same time, they also support businesses in appointing lawyers to participate in the litigation process to ensure the rights and interests of the business, helping to enhance the ability to win the lawsuit and bring the most favorable judgment for the debt collection process of the business.

Above is the article “Benefits of using a law firm’s debt collection service”, hope that this article is useful for the operation of businesses.

Best Regard

Documents required for debt recovery

Necessary documents for debt recovery

Written by TNTP LAW on . Posted in Thu hồi nợ, Thu Hồi Nợ.

To effectively carry out debt collection, businesses need to prepare documents and paperwork, as well as financial resources and time to pursue the debt recovery process to the end. To support businesses with the knowledge to carry out the debt collection process, in this article, TNTP will provide insights into important debt collection documents that businesses need to prepare.

1. Contracts between the parties involved

One of the first debt collection documents that businesses need to prepare is the contract from which the debt of the debtor arises. This is the basis for the business to demand that the debtor fulfill the obligation to pay, as, from the moment the contract is concluded, the rights and obligations of the parties arise.

In addition, some contracts also specify the penalties for violations, payment obligations, payment periods, and dispute resolution agencies. Based on these provisions, businesses can demand that the debtor pay them, as the terms were agreed upon in good faith and voluntarily by the parties. In case the business initiates a lawsuit in court or a commercial arbitration center, these agencies will rely on the contents of the contract to consider whether the business’s request is reasonable and whether the debtor is eligible to be required to repay the debt or not.

2. Delivery receipt and invoice

These are debt collection documents that prove that the business has fulfilled its obligations, whether it is the obligation to deliver goods or the obligation to pay. Based on these documents, the business has a basis to prove that it has fulfilled its obligations under the contract, or to what extent the debtor has fulfilled their obligation, from which the business can demand the payment of money or assets from the debtor.

In addition to ensuring the fulfillment of obligations between the business and the debtor, issuing invoices also demonstrates that the buying and selling process and the use of services are legal and have clear evidence. Because if the buying and selling activities between the parties do not issue invoices in accordance with the law, they may be penalized under the provisions of the law. Businesses need to prepare these documents to ensure their interests.

3. Debt reconciliation agreement

A debt reconciliation agreement is a crucial document in the litigation process because it records the debt between the debtor and the business, the process of the debt arising, and the payments made. Furthermore, this document shows the verification of the debtor regarding the debt owed to the business. If the business can compel the debtor to sign this document, it will make the debt recovery process much more convenient. As dispute resolution agencies often consider the debt reconciliation agreement as an important document to determine the debtor’s payment obligations, as the debtor has acknowledged the debt in the document, they will have an obligation to make payment to the business.

4. Debt recovery documents contain information about the debtor’s address and bank account.

This is the information to serve the contact process, send official letters, and determine the court with jurisdiction over the business’s lawsuit in the event of the debtor filing a lawsuit. In addition, determining whether the debtor still operates at the registered address will help the business evaluate the debtor’s ability to pay, whether it is good or bad. In case the business determines that the debtor no longer operates at the registered headquarters, they can request the competent tax authority to inspect the headquarters address according to the provisions of the law as a form of warning to the debtor.

5. Debt recovery documents related to the content of exchanges between parties in the contract execution process.

In the process of executing a contract, if the business and the debtor have any issues that need to be resolved or exchanges about goods, the request for payment is usually made through correspondence such as official letters, emails, or messages. If the business wants to use debt recovery services or request competent authorities to resolve the case, they need to provide this information and documents because these are the clearest evidence of the content of the case, why the debt arose, and how much money is involved. If the business prepares these documents, it will create favorable conditions for debt recovery companies and dispute resolution agencies to understand the content and progress of the case and from there, come up with objective and effective solutions to protect the business’s interests.

The above is TNTP’s sharing of the necessary debt recovery documents that businesses need to prepare. Hopefully, this article is helpful to businesses.

Best regard.

What work will the law firm perform in the debt collection process

What work will the law firm perform in the debt collection?

Written by TNTP LAW on . Posted in Thu hồi nợ, Thu Hồi Nợ.

In their business activities, companies often encounter situations where their partners fail to make timely payments, leading to bad debts. These difficult-to-recover debts can have a significant impact on a company’s cash flow, whether they are payments from a customer who has not paid for goods or services or payments for fulfilling contractual obligations. In such circumstances, companies can turn to the professional debt recovery services of law firms. In this article, we will analyze the tasks that law firms typically use in the debt recovery process.

1. Negotiation

Negotiation is the first task that law firms use when providing debt recovery services. In this stage, the law firm will propose a respectful and constructive payment plan to the debtor. In this task, the law firm will research and prepare all documentation related to the debt and legal regulations to compel the debtor to fulfill their payment obligations. If the debtor cooperates with payment, the law firm will propose the signing of reconciliation statements, confirmation of debts, and a specific payment schedule to bind the debtor’s obligation to repay.

In cases where the debtor does not cooperate during the negotiation process, the law firm will move on to the next debt recovery task, which involves sending more assertive letters.

2. Sending Payment Request Letters

This is the next task in a law firm’s debt recovery service if negotiation fails or if the debtor does not cooperate in the negotiation process. The law firm will send payment request letters, which usually include:

• Detailed information about the debt and the amount that the debtor must pay
• The deadline for the debtor to make the payment or respond to the payment request
• Legal measures that the law firm will apply if the debtor does not cooperate with payment within the deadline

These letters will be sent via email or by mail to the debtor’s headquarters address (depending on the information that the law firm has gathered about the debtor). After the debtor receives the payment request letter, the law firm will monitor the debtor’s payment process. If the debtor repeatedly fails to pay or respond to the payment request letter, the law firm will propose further actions to the client.

3. Working with the competent tax authorities

In case the debtor’s whereabouts are determined to no longer be at the registered address, the law firm providing debt collection services will work with the competent tax authorities to request an inspection of the debtor’s registered address. If the debtor is still in operation but not at the registered address, the law firm will request that the tax authorities issue a notice to terminate the debtor’s tax code to recover the business registration certificate.

Termination of the tax code and recovery of the business registration certificate will seriously affect the debtor’s profits and force them to consider payment options. Typically, working with the tax authorities will be notified by the law firm to the debtor during the stage of sending a payment request letter. In cases where the debtor does not cooperate with payment, the law firm will work directly with the tax authorities to increase pressure on the debtor to pay the debt.

4. Filing a lawsuit at the Commercial Arbitration Center or the Court

In debt collection services, filing a lawsuit will be the most impactful stage and will only be carried out if the above steps have been implemented but have not yielded results. At this point, the law firm will propose to initiate the final step of filing a lawsuit with dispute resolution institutions such as the Commercial Arbitration Center or the Court. Accordingly, at this stage, the law firm will request the company to submit a lawsuit to request the Court or Commercial Arbitration Center to settle the dispute based on evidence and documentation of the case. The choice of dispute resolution agency depends on the content of the contract between the parties.

At this stage, the debtor will be summoned by the Commercial Arbitration Center or the Court to participate in litigation procedures. After conducting the necessary procedures, the Commercial Arbitration Center or the Court will issue a legally valid judgment or ruling. After the judgment or ruling becomes legally effective, it will be enforced by the competent civil enforcement agency in the name of state authority to force the debtor to pay according to the provisions of the law.

The above is an article by TNTP on the debt collection services that law firms will perform, hoping that this article will be useful to businesses.

Best Regard

Legal issues related to debt collection through technology in Vietnam

Legal issues related to debt collection by technology in Vietnam

Written by TNTP LAW on . Posted in Thu Hồi Nợ.

Debt collection activities are currently very popular in different forms, one of which is debt collection through the application of technology tools such as using phones, text messages, email, and the internet. However, the use of technology tools in debt collection activities that do not comply with the law can lead to serious consequences. In this article, TNTP will provide opinions on legal issues related to debt collection by technology means in Vietnam.

1. The current situation of using technology means for debt collection

The debt collection by technology is very popular nowadays. Contacting the debtor via email or phone is often the first measure that debt collection service providers apply because it saves time and costs. Just a phone call lasting from a few minutes to several tens of minutes will bring certain results for the debt collection process, even with the possibility of collecting a debt immediately if the debtor is willing to cooperate in payment. Moreover, this contract also aims to probe the goodwill of the debtor’s payment. In many cases, after knowing the number of the debt collector, the debtor may block the number or have an uncooperative attitude, or no longer use the subscribed number. After initially identifying whether the debtor is cooperative in payment or not, debt collection parties can apply appropriate measures.

Many credit institutions have also built databases to collect information about the debtor to serve the debt collection process. These databases are taken from the information of the debtor when registering loan accounts at the bank, or from other sources that the bank has a relationship. Then, the debtor’s data will be provided to the debt collection teams of the bank itself or the law firms where the enterprise uses debt collection services.

Therefore, it can be seen that the use of debt collection by technology in Vietnam is widely used and brings many values, however, if technology is used to carry out illegal debt collection, it will leave many bad consequences for society.

2. Exploiting technology to illegally collect debts

Although many debt collection activities that use technology within the scope of the law are allowed, many debt collectors have illegally applied technological means to collect debts. For example, using the internet to publish images and information of debtors to threaten and terrorize the debtor (even their relatives), these actions may constitute crimes as defined in the Penal Code.
Currently, many debt collection companies have been investigated and prosecuted by law enforcement agencies for crimes such as “Appropriation of property by force”, “Defamation, insult”, and “False accusation”. For example, in February 2023, the police in Kien Giang province prosecuted a case, arrested and detained suspects to investigate the crime of “Appropriation of property by force” at Phap Viet company, with many illegal debt collection activities such as making threatening phone calls and terrorizing debtors. Posting information and edited images of debtors on public platforms to threaten and force the debtor to pay. The police in Kien Giang province identified the offenders who had threatened, terrorized, and seized the property of thousands of victims, and confiscated nearly 1,000 billion dong in illegal gains.

It can be seen that the debt collection by technology has infringed on personal information rights as well as affected the reputation and dignity of the debtor. At the same time, these actions have also constituted crimes under the provisions of the Penal Code. The exploitation of technology to illegally collect debts is a very serious offense and must be strictly punished according to the law.

Above is an article on the topic ” Legal issues related to debt collection through technology in Vietnam” by TNTP, hope that this article will be useful to readers.

Best regards,

 

Essential skills for debt collectors in Vietnam

Essential skills for debt collectors in Vietnam

Written by TNTP LAW on . Posted in Thu Hồi Nợ.

Debt recovery in Vietnam is one of the necessary services with high demand for society, especially in the aftermath of the Covid-19 pandemic when the economy is declining, leading to the emergence of debt for businesses. However, for debt recovery services in Vietnam to be effective and truly beneficial for customers, debt collectors must be equipped with the necessary debt recovery skills. Let’s explore this topic with TNTP in the following article.

1. Equipped with legal knowledge

Debt recovery services today require debt collectors to understand the relevant legal regulations, as in any other profession in society, the debt recovery process needs to comply with the law. Many debt recovery companies that carry out illegal debt recovery activities have been heavily sanctioned by competent authorities for violating the rights and interests of individuals and organizations protected by law.

Therefore, legal knowledge is the most necessary debt recovery skill for debt collectors to help them avoid risks in their work and provide appropriate solutions for each case. This is a skill that every debt collector must learn and prioritize first when working in this field.

2. Communication skills

As a service provider, communication skills are also important in debt recovery activities. In every debt recovery case, debt collectors have to communicate with different people, from customers, and competent authorities to debtors. Therefore, to ensure clear communication of the content, intent, and expression of their views, debt collectors need to have good communication skills. In fact, the success of debt recovery depends greatly on communication skills, as when debt collectors are not professional and show hesitation, or weakness when negotiating debt recovery, it will not have a significant impact on the debtor and they cannot demand payment.

3. Flexibility in problem-solving

Like any other profession in society, debt collection services also have their own difficulties and challenges. When facing problems that arise during the process of debt collection, debt collectors need to have the ability to solve problems flexibly. For example, when exchanging with a debtor who has an uncooperative attitude, the collector must behave firmly, provide specific, clear evidence and emphasize the demand for repayment or take appropriate legal measures to force the debtor to pay. However, if the collector identifies that the debtor has the intention to pay, but needs time to prepare financially, they can approach the debtor more gently and on a goodwill basis. In addition, in many cases, debtors change their attitudes from cooperation to non-cooperation, and debt collectors need to have a way to deal with it appropriately.

4. Patience

When customers use debt collection services, it is usually because they have debts that they cannot recover from themselves. Therefore, the debt collection process is not simply an ordinary exchange where the debtor will pay. Many customers forget about their debts for many years, leading to a lengthy recovery process. Moreover, the debt collection process depends largely on the debtor’s financial ability, so the recovery time can range from a few months to several years. At that time, patience is a necessary skill for each debt collector to be able to pursue the case to the end and bring benefits to the customer.

5. Honesty

The core of debt collection services is to provide customers with money that the debtor did not pay on time. Therefore, if the debt collector is not honest during the exchange with the debtor, does not provide accurate information about the debt to be paid, “colludes” with the debtor to deceive the assessment of the situation, or takes advantage of the debtor’s payments, the debt collection process may not achieve results or may be prolonged. The most serious consequence is that if fraudulent behavior is discovered, it will cause customers to lose trust in the company and no longer want to cooperate, even affecting the reputation of the entire debt collection company. Like any other necessary debt collection skill, honesty is a quality that needs to be ensured to achieve the best results in the work and to ensure the reputation of the debt collector with the company.

Above is an article about: “Essential skills for debt collectors in Vietnam”, hope this article is useful for businesses.

Best regards.

SHOULD CHOOSE A COURT OR ARBITRATION

Should choose a court or arbitration to commercial dispute settlement ?

Written by TNTP LAW on . Posted in Dispute Settlement, Giải quyết tranh chấp.

Arbitration and Court are two forms of commercial dispute settlement that are often chosen by the parties when negotiations are not possible. Each form has its own characteristics, advantages and limitations. Therefore, in this article, TNTP will clarify the differences, advantages and limitations of these two forms of dispute settlement so that readers have more grounds to choose the most appropriate and optimal form of commercial dispute settlement.

1. Advantages and Disadvantages of Court and Arbitration when commercial dispute settlement

1.1 Advantages and Disadvantages of Court

  • Advantages:

– Judgment/Decision is usually more enforceable than an Arbitration Award.

– Court fee/advance fee is lower than Arbitration’s.

– The court advance fee may be partially or fully refunded according to the Court’s Judgment/Decision.

– Public, deterrent trial.

  • Disadvantages:

– The trial procedure is not flexible and must comply with the law on civil procedure.

– The selection of the Court to settle the dispute must comply with the provisions of the law on civil procedure.

– Dispute settlement time usually takes longer than Arbitration.

– Public trial shall affect the relationship between the disputing parties, the image, reputation in the market or the business secrets of the disputing parties.

1.2 Advantages and Disadvantages of Arbitration

  1. Advantages:

– Is a solution of commercial dispute settlement based on the agreement of the parties. The parties can choose ad-hoc arbitration or dispute settlement arbitration center, dispute settlement arbitrator, etc.

– Flexible procedural, quick case settlement time.

– The Arbitration Award is final (ie final and not subject to appeal like a Court’s Judgment/Decision) and has the same validity as a Court’s Judgment/Decision

– Confidentiality of information because commercial dispute settlement by arbitration is not conducted publicly, unless otherwise agreed by the parties.

  • Disadvantages:

– Arbitration fees are much higher than the Court’s.

– Investigating, verifying, collecting evidence, applying provisional urgent measures is more time consuming and limited than the Court.

– The Arbitration Award may be considered annulled by the Court upon the request of one party.

– Enforcement of Arbitration Awards is often more complex than enforcement of Court Judgments/Decisions.

2. Differences in commercial dispute settlement at Court and Arbitration

2.1 Dispute settlement at Court

  • Competence:

– Has competence in settling civil disputes in general, and commercial disputes settlement in particular.

– Has no settlement competence and must refuse to accept the case when the parties have an arbitration agreement (unless the arbitration agreement is invalid, the arbitration agreement cannot be performed).

  • Procedure:

– Some of the most basic steps when settling disputes in Court:

– Plaintiff sues Respondent at a competent court.

– Pre-litigation mediation.

– Session to check the handover, access, disclosure of evidence and conciliation.

  • The settlement of disputes at the Court can be done through two levels of trial: first instance and appellate. Court’s Judgments/Decisions that have taken legal validation can also be reviewed according to cassation or retrial
  • Validation of the Court’s Judgment/Decision:

Court’s Judgments/Decisions may have to go through two levels of trial, first instance, appellate and may be reviewed according to cassation or retrial procedures, so the Judgment/Decision may be changed.

  • Enforcement of the Court’s Judgments/Decisions:

Court judgments/decisions are binding and guaranteed to be enforced by the judgment enforcement agencies.

2.2 Dispute settlement at Arbitration

  • Competence:

– Disputes shall be settled by Arbitration when the parties have an arbitration agreement made before or after the dispute occurs.

– Disputes are under the settlement competence of the Arbitration:

– Disputes between parties arise from commercial business.

– Disputes arising between parties in which at least one party has commercial business.

– Other disputes between the parties as prescribed by law shall be settled by Arbitration.

  • Procedure:

Some of the most basic steps when settling disputes at the Arbitration Center:

– Plaintiff submits the Complaint to the Arbitration Center.

– Plaintiff and Respondent choose an Arbitrator.

– Investigate, collect documents and evidence.

– The Arbitration Council announces the date of the Dispute Settlement Session.

– Disputing parties participate in Dispute Settlement Session.

– Arbitration Award is issued.

  • Validation of the Arbitration Award:

– The Arbitration Award is final, ie the final award binding on the parties.

– However, the Arbitration Award may be annulled by the Court under Articles 68 and 69 of the 2010 Commercial Arbitration Law.

  • Enforcement of the Arbitration Award:

– The State encourages the parties to voluntarily implement the Arbitration Award.

– At the expiration of the time limit for enforcement of the Arbitration Award, but the enforced party does not voluntarily enforce it and does not request annulment of the Arbitration Award under Article 69 of the 2010 Commercial Arbitration Law, the enforceable party has the right to make an application of request and send the competent civil judgment enforcement agency to enforce the Arbitration Award.

– For an ad-hoc Arbitration Award, the enforceable party has the right to make an application of request and send to the competent civil judgment enforcement agency to enforce the Arbitration Award after the Award is registered in accordance with Article 62 of the 2010 Commercial Arbitration Law.

– The enforcement of the Arbitration Award is carried out in accordance with the law on civil judgment enforcement.

Thus, depending on the specific case and your needs, individuals and enterprises can choose one of the two forms of commercial dispute settlement mentioned above. Each form has its own characteristics, advantages and limitations, so understanding the properties of each form will help individuals and enterprises make the most appropriate and optimal choice.

Above is the sharing of legal knowledge of TNTP on “Should choose a court or arbitration to settle commercial business disputes?”. Hope this article will be helpful to you.

Sincerely,

Resolving disputes and debt recovery for businesses

Resolving disputes and debt recovery for businesses

Written by TNTP LAW on . Posted in Dispute Settlement, Giải quyết tranh chấp.

In business operations, one of the common issues that enterprises often encounter is resolving disputes and debt recovery. Both of these are related to the process of addressing financial issues and maintaining the cash flow of the enterprise, but they have different natures. In this article, TNTP will explain the difference between resolving disputes and debt recovery for enterprises.

1. Resolving disputes in business operations

Disputes in business operations can arise in every aspect of the enterprise’s operations. It can be a dispute regarding the exercise of rights and obligations of the parties in the contract execution process, such as disputes over non-delivery, non-payment, etc. Disputes related to the relationship between the enterprise and the employee, such as wage reduction, compensation, change of position, and dismissal, can also occur.

If the enterprise’s operations process is like navigating a ship in the sea, resolving disputes is similar to operating the ship in the right direction and avoiding sinking. If disputes arise but are not resolved in a timely manner, it can seriously affect the enterprise’s operations process, or even lead the enterprise to the situation of insolvency and inability to operate. Not to mention the legal implications that could result in fines or other legal actions against the enterprise.

Therefore, resolving disputes in the enterprise’s operations is equally important as operating the enterprise itself.

2. Debt collection for businesses

Debt collection is the process in which businesses take measures to force debtors or partners to pay their overdue debts. The purpose of debt collection is to ensure the liquidity of the business and minimize overdue debts to limit the credit risk of the business.

Debt collection methods may include negotiation, mediation, litigation, or the use of debt collection services from law firms. Depending on the amount of debt to be collected and the importance of the debt, businesses will apply appropriate measures.

If a business does not have effective and skilled debt collection methods, it can lead to many risks in the business operation such as losing customers or partners, losing control of cash flow, and facing difficulties in operation.

Furthermore, debt collection requires skills and contingency planning because businesses will also have to spend money and manpower, as well as time to carry out debt collection. This is not to mention that the debt collection process may be prolonged or even ineffective. Therefore, businesses need to invest in the legal department or use debt collection services to ensure the effectiveness of debt collection and save costs and time in the debt collection process.

3. The relationship between dispute resolution and debt collection

Although disputes and debts are two different issues in business operations, they are closely related to each other. When a business has overdue debts, it can lead to disputes arising. Conversely, when disputes arise, they can lead to difficulties in debt collection. Therefore, resolving disputes and debt collection are two issues that cannot be separated in business operations. Combining dispute resolution and debt collection will help businesses optimize their business operations, minimize risks, and ensure the liquidity of the business.

Best Regard.

TNTP & ASSOCIATES INTERNATIONAL LAW FIRM

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    Room no. 1901, 19 th Floor Saigon Trade Center Tower, No. 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City
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  • Email: ha.nguyen@tntplaw.com

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