Generally speaking, the reason and condition for an enterprise to be declared bankrupt is insolvency. Specific legal procedures: the bankrupt company itself, that is, the debtor can apply for bankruptcy, or the creditors of the bankrupt company can apply for bankruptcy, and the court will make an acceptance ruling after accepting it, and formulate bankruptcy procedures such as the manager calling a liquidation group, clearing assets, determining creditor's rights and debts, and making distribution.

Second, detailed analysis

If an enterprise suffers serious losses and cannot pay off its due debts, it does not necessarily require insolvency. Creditors have the right to apply to the people's court for declaring the debtor bankrupt and implementing bankruptcy liquidation. The debtor may also apply to the people's court for bankruptcy and liquidation. However, bankruptcy procedures are not applicable to enterprises owned by the whole people in the following two situations: public enterprises and enterprises that have a great relationship with the national economy and people's livelihood, and relevant government departments give subsidies or take measures to help pay off debts. Obtain debt repayment guarantee and be able to pay off debts within 6 months from the date of filing for bankruptcy.

Third, how to deal with the bankruptcy debt of the company?

Once the company goes bankrupt, it needs to be liquidated by the liquidation team, and then the debts should be paid off with the property of the bankrupt enterprise, and the debts should be paid off in sequence. At this time, it is likely that the debt has not been fully paid off. Bankruptcy property gives priority to paying off bankruptcy expenses, that is, expenses incurred due to the common interests of bankrupt creditors, such as legal fees and public welfare debts, which refer to debts incurred to the debtor's property for the common interests of bankrupt creditors after the people's court accepts the bankruptcy application, such as labor remuneration and social security expenses paid to enable the debtor to continue to operate. After paying these expenses, the debts shall be paid off in the following order: first, wages, medical care, disability allowance, pension expenses, basic old-age insurance, basic medical insurance, etc. Owed by the bankrupt; Second, the various social insurance fees and taxes owed by the bankrupt; Third, ordinary debt, that is, the payment for goods and loans owed in the course of operation.