What is the bankruptcy filing process?

1. Bankruptcy application: the creditor or debtor applies for bankruptcy to the court 2. Case filing review: the court makes a decision on whether to accept it 3. Case acceptance: if accepted, the court shall notify all creditors in accordance with the law 4. Work after the case is accepted: declaration and registration of creditor's rights 5. Creditors' meeting: form a creditors' meeting and discuss the rectification and reconciliation agreement 6. Enterprise rectification: bankruptcy declaration - bankruptcy liquidation - ruling on the end of bankruptcy proceedings - enterprise cancellation registration.

What is the bankruptcy filing process?

If a creditor applies for bankruptcy, the corresponding conditions need to be met, and at the same time, it must go through the statutory process. So what are the conditions for bankruptcy filing, and how does the bankruptcy application process work?

1. What is the bankruptcy application process?

1. When a company applies for bankruptcy, it must first file an application, and as a debtor, it must first apply for bankruptcy to the competent department at a higher level. The competent authority examines the eligibility for bankruptcy and the boundaries of bankruptcy.

2. Secondly, it is reconciliation and rectification, the "Bankruptcy Law" stipulates: "due to poor management of the enterprise, can not pay off the debts due", therefore, after the review and ruling of the regulatory law, the debtor enterprise will be reorganized, if the rectification is successful, the court will end the bankruptcy procedure of the enterprise and make an announcement.

3. Then, it is bankruptcy liquidation, to set up a bankruptcy liquidation group, the "Company Law" stipulates: if the company is declared bankrupt according to law because it cannot pay off its due debts, it is necessary to organize shareholders and relevant personnel to liquidate the company.

4. Finally, it is bankruptcy liquidation, the first thing to be paid off is the wages and labor insurance premiums of employees, and then the external debts of the enterprise.

2. Conditions for creditors to apply for bankruptcy

1. Creditor's eligibility to apply. Under the insolvency law, a creditor's application is not in the nature of a class action; Creditors filing for bankruptcy can only exercise their own claims. Therefore, in accordance with the spirit of the provisions of the bankruptcy law, the creditor's right to claim bankruptcy must meet the following conditions: it must be a claim with payment content; must be a legally enforceable claim; Must be an expired claim.

2. The formal conditions of the creditor's application. According to the judicial interpretation, the materials that a creditor should submit to the people's court to apply for bankruptcy of the debtor are:

(1) Facts and evidence of the occurrence of the creditor's right.

(2) The nature and amount of the obligatory right, whether it is secured or not, and attached evidence.

(3) Evidence that the debtor is unable to pay off the debts due.

3. The substantive conditions of the creditor's application. Paragraph 2 of Article 7 of the Bankruptcy Law stipulates that: "If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor." ”。

Here, the law only stipulates that "the debtor is unable to pay off the debts due" for the substantive conditions of the creditor's application, which does not mean that in the case of the creditor's application, there is only one factual composition of the cause of bankruptcy.

The reason for this is that the fact that the debtor's "assets are insufficient to pay all debts or manifestly lacks solvency" is an internal situation of the enterprise and creditors are usually not able to know for sure, so creditors should not be required to prove it when filing a bankruptcy petition.

In view of this, paragraph 2 of Article 11 of the Bankruptcy Law stipulates that if a creditor submits an application, the debtor shall, within 15 days from the date of service of the acceptance ruling, submit to the people's court a description of its property status, a list of debts, a list of creditor's rights, relevant financial and accounting reports, as well as the payment of employees' wages and social insurance premiums. If the debtor does not possess other facts required by the cause of bankruptcy as stipulated in Article 2 of the Bankruptcy Law, the people's court may rule to reject the application after accepting the bankruptcy application and after it is discovered after examination and discovery before the bankruptcy declaration.

Filing for bankruptcy does not necessarily lead to the elimination of the company's legal personality, and there is still an opportunity for reorganization, and if it is done well, it is possible to bring the company back to life.