According to Article 54 of the Bankruptcy Law 2014, the order of asset distribution for a bankrupt company is as follows:
- In case the Judge declares bankruptcy, the assets of the enterprise or cooperative will be distributed in the following order:
+ Bankruptcy costs.
+ Debts for wages, severance allowances, social insurance, health insurance for employees, and other benefits according to labor contracts and collective labor agreements that have been signed.
+ Debts incurred after initiating bankruptcy proceedings for the purpose of restoring business operations of the enterprise or cooperative.
- Financial obligations to the State; unsecured debts to be paid to creditors in the creditor list; unpaid secured debts due to insufficient value of collateral assets for debt repayment. In cases where the value of assets of enterprises or cooperatives, after full payment, still remains, this remaining portion belongs to:
+ Cooperative members, cooperative member.
+ Private business owner.
+ Owner of a single-member limited liability company.
+ Member of a two-member limited liability company, shareholder of a joint stock company.
+ Member of a partnership company.
- If the value of assets is not sufficient for payment, each party will be paid in order of priority according to the corresponding percentage of debt.
