Law on disposals of secured assets in debt purchase and sale by credit institutions - Obstacles, inadequacies and proposals for amendment

Abstract

In recent years, bad debt and bad debt settlement have still remained as a topic attracting considerable concern. The competent authorities, together with the banking system, have made a huge effort to address this problem by implementing different solutions synchronously in order to deal with bad debts, recover capital, and dissolve the “blood clots” of the economy. Among the solutions, collateral handling for recovering debt is still considered as the basic and popular one. Therefore, recently, the law on the disposals of secured assets has been issued relatively sufficient, which creates a legal corridor for these activities. However, through practical application, it has revealed itself with many obstacles and inadequacies derived from many different causes, especially from the legal mechanism. Therefore, in order to effectively dispose the secured assets, the legal system must acquire some amendments and supplements to meet with the practical situation and requirements.