Process for Reclaiming Loaned Property Without a Written Contract in Vietnam

When you lend someone property (money or assets) without a written contract, recovering that property in case of a dispute is undoubtedly more difficult—but not impossible. Vietnamese law allows civil transactions to be recognized through verbal agreements, conduct, or electronic data if they meet the legal validity requirements.

1. Legal Basis and Initial Principles

1.1 Lending transactions do not require written form

According to Article 117 of the 2015 Civil Code, a transaction's form is only a mandatory condition if the law explicitly requires it. For lending transactions involving money or goods, the law does not require a written contract for the transaction to be valid.

Therefore, a loan made verbally, through messages, bank transfers, or voice recordings can still be legally recognized if the parties, content, and voluntary nature of the transaction can be proven.

1.2 Rights and obligations of the lender without a contract

The lender must prove that the property was delivered to the borrower, and the borrower has the obligation to return it.

In the case of non-fixed-term or interest-free loans, the lender has the right to demand repayment at any time, provided they notify the borrower within a reasonable period. If no prior notice is given, the court may reject the lawsuit due to the absence of a valid legal claim.

Article 469 of the Civil Code confirms the lender's right to demand repayment in such cases, subject to prior notice.

1.3 Limitations and risks

If there's no solid evidence or the borrower denies the loan entirely, your chances of winning the case are low.

Also, when demanding repayment, it is critical to avoid violating the law: do not use force, make threats, break into the borrower’s home, humiliate them, or publish their personal information without consent. These actions may result in criminal or administrative liability.

2. Detailed Steps to Reclaim Loaned Property

Here’s a step-by-step guide based on practical experience for reclaiming assets lent without a formal agreement:

Step 1: Gather and consolidate evidence

In the absence of a written contract, you must gather substitute evidence to prove the loan:

• Messages, emails, recordings, video/audio of verbal agreements: confirm the loan and repayment commitment.

• Bank statements or transfers: showing funds sent to the borrower’s account, preferably labeled as “loan” or “borrowed money”.

• Witnesses: third parties who are aware of the loan can provide supporting testimony.

• Bailiff’s report (vi bằng): if the loan was handed over in cash, you can request a bailiff to certify this act.

• Additional documents: transaction logs, communication history, photos, videos, etc.

When submitting a lawsuit, the court will evaluate whether the evidence is legal, relevant to the dispute, and persuasive (per Article 108 of the Civil Procedure Code).

Step 2: Send a written debt collection notice

Even without a contract, issuing a written notice is very important:

• The debt notice should clearly state: the loan amount, date of loan, reason for the demand, repayment deadline (e.g., 7–10 days), and a warning of legal action if unpaid.

• This notice not only shows goodwill but also serves as a mandatory basis for the court to accept your lawsuit. If you fail to send such notice, the court may reject your petition for lacking evidence of a legal violation.

Step 3: File a lawsuit at a competent court

If the borrower still refuses to repay after being properly notified:

• Submit a petition to the People’s Court at district level where the borrower resides, works, or where the disputed asset is located.

The lawsuit dossier should include:

• Official lawsuit petition (Form 23-DS under Resolution 01/2017/NQ-HĐTP)

• Copies of ID/Passport and household registration of both lender and borrower

• All gathered evidence (messages, statements, witnesses, bailiff reports, etc.)

• Photos or videos showing the act of transferring the asset/money

• Proof of prior notice requesting repayment

• Any other relevant documents

The court will review your standing to sue, the validity of your dossier, and may reject your case if you failed to give notice or provide adequate evidence.

If the case is accepted, the court will proceed with mediation, evidence collection, witness summoning, and trial.

Step 4: Enforcement of judgment (if you win)

If the court rules in your favor and issues an enforceable judgment:

• Submit the judgment and enforcement request to the Civil Judgment Enforcement Agency (THADS) where the borrower resides or has property.

• If the borrower has no assets or income, THADS may not be able to enforce the judgment immediately.

• During enforcement, you may request asset seizure, freezing of accounts, or salary garnishment.

• If the borrower refuses to cooperate or deliberately evades payment, you can request THADS to initiate coercive enforcement measures, provided there is a legal basis.

3. Key Considerations for Uncontracted Loans

Stay lawful and composed

Avoid all unlawful actions such as threats, harassment, home invasion, detention, or defamation. Such behavior may be prosecuted under Articles 157, 158, 168, and 170 of the Penal Code.

Violating the law could cost you both your property and your freedom.

Statute of limitations

• The statute of limitations for civil loan disputes is typically 3 years from the date your right to claim arises (Article 429, Civil Code).

• However, for open-ended or indefinite-term loans, you can demand repayment at any time, provided you have valid proof and give prior notice.

Consider cost–benefit effectiveness

Sometimes the legal fees, court costs, and time investment may exceed the amount owed—especially if the borrower has no enforceable assets.

Preserve evidence from the start

Before lending, try to draft at least a simple written agreement, keep clear records, and save transfer confirmations or messages. This reduces risks if disputes arise.

Clarify the type of asset

• If the asset is unregistered movable property, the owner can reclaim it at any time (no statute of limitations), unless the holder qualifies as a “good faith possessor” under Article 167 of the Civil Code.

• For registered property (like vehicles or real estate), check whether the current possessor holds legal title.

4. Conclusion

While lending without a written contract involves higher legal risks, it is still possible to reclaim the property if you prepare solid evidence and follow the correct legal procedure.

The basic process includes: collecting evidence → sending a repayment notice → filing a lawsuit → enforcing the judgment if successful. Throughout this journey, remain calm, patient, and strictly law-abiding to avoid further complications.

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