Transactions Considered Null and Void
A transaction of an enterprise or cooperative that has lost its ability to pay, carried out within six months prior to the date the People’s Court issues a decision to initiate bankruptcy proceedings, shall be considered null and void if it falls under one of the following cases:
a) Transactions involving transfer of assets not at market value;
b) Converting unsecured debts into secured debts or partially secured debts with the assets of the enterprise or cooperative;
c) Payments or set-offs that benefit a creditor for debts not yet due or for an amount greater than the debt that is due;
d) Gifting assets;
đ) Transactions outside the business purposes of the enterprise or cooperative;
e) Transactions aimed at disposing of the assets of the enterprise or cooperative for other purposes.
Legal basis: Article 59, Bankruptcy Law 2014
