I. Application

Bankruptcy application means that the parties request the court to declare the company bankrupt.

Two. accept

After the people's court decides or accepts the bankruptcy case of the company, it shall notify the debtor and known creditors within 10 days and make an announcement. The creditor shall, within 30 days after receiving the notice, and the creditor who has not received the notice shall, within 3 months from the date of announcement, declare the creditor's rights to the people's court, explain whether the amount of the creditor's rights is secured by property, and submit supporting materials. If the creditor's rights are declared within the time limit, it shall be deemed as giving up the creditor's rights.

Third, the announcement

When the court hears the bankruptcy application filed by the creditor or debtor, it can declare bankruptcy if it is confirmed that the legal conditions are met.

The definition of declaring a company bankrupt means that the statutory conditions for declaring a company bankrupt are met and the company is declared bankrupt by the people's court.

The basis for declaring the company bankrupt is the provisions of the Enterprise Bankruptcy Law of the People's Republic of China on the bankruptcy and debt repayment procedures of enterprise legal persons.

Bankruptcy of a company means that creditors or debtors apply to the people's court for bankruptcy and debt repayment because the company cannot pay off its debts due. The conditions for the establishment of a bankrupt company have two meanings:

1. A company's inability to pay off its debts means that the company is in trouble, unable to repay its debts or unable to continue to repay its debts. The ability to repay is manifested in:

1) The company's liabilities exceed the company's assets, resulting in insolvency;

2) It means that although the company's liabilities do not exceed the company's assets, due to various reasons, the company is unable to mobilize its assets to pay off its debts;

2. The company's inability to pay off due debts refers to the situation that the company can't pay off due debts according to law, whether it is caused by subjective factors or objective factors.

Under the above circumstances, according to Article 199 of the Civil Procedure Law, if an enterprise as a legal person is unable to pay off its debts due to serious losses, the creditor may apply to the people's court for declaring the debtor bankrupt. The debtor may also apply to the people's court for declaring bankruptcy and paying off debts.

The enterprise has been declared bankrupt with the approval of the people's court and entered the bankruptcy procedure.

Four. liquidate

According to the Company Law, if a company is declared bankrupt according to law because it cannot pay off its due debts, the people's court shall, in accordance with the provisions of relevant laws, organize shareholders, relevant authorities and relevant professionals to set up a liquidation group to conduct bankruptcy liquidation of the company.

V. Bankruptcy

Bankruptcy termination refers to the court ruling on the end of bankruptcy proceedings.