Different enterprises have to face different problems, individual nature, after bankruptcy, they must repay the loan. If there is a mortgage or guarantee, the bank will repay the loan by auction. If a company limited by shares applies for a loan in the name of its shareholders, all the loans will be repaid by the shareholders. According to Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China, the bankrupt property shall be paid off in the following order after the bankruptcy expenses and beneficial debts are paid off first: (1) The wages, medical care, disability allowance and pension expenses owed by the bankrupt to employees shall be included in the basic old-age insurance and basic medical insurance expenses of employees' personal accounts, as well as the compensation that should be paid to employees according to laws and administrative regulations; (2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph; (3) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise.
What if the company goes bankrupt and owes a bank loan?
Institutions that owe bank loans but are unable to repay them will take a series of measures, as follows:
1. The bank will call the borrower to collect debts.
2. If the borrower still fails to repay the debt after debt collection, there will be a certain penalty interest and a bad credit record for himself.
3. If the borrower still fails to repay the loan, the bank will send relevant staff to collect it in person.
4. If the borrower fails to repay the loan until the end, the bank will take legal measures to safeguard its own rights and interests. If the borrower applies for a mortgage loan, the collateral will be auctioned, and then the proceeds from the auction will be used to repay the loan.
Extended data:
overdue loans
According to the relevant provisions of the Contract Law, the borrower fails to repay the loan within the time limit stipulated in the loan contract, which is a breach of contract and should bear the liability for breach of contract. The ways to bear the liability for breach of contract include returning the loan principal, paying the interest during the loan period agreed in the contract and paying the interest of loans overdue.
Repaying the loan principal and paying interest within the loan period agreed in the contract will generally not cause disputes because the parties have clearly agreed in the loan contract; There is a great dispute between the parties about the interest on overdue loans, and the standards applied by judges in hearing such cases are not uniform, which affects the authority of the law. Lawyers believe that it is necessary to integrate this issue so that everyone's understanding can be unified.
The funds invested by banks in such loans may or may not be recovered in the future. There is a great possibility of losses, and commercial banks usually have to impose a penalty interest on such loans. Overdue loans are the problem assets of banks. Commercial banks should maintain a high capital reserve, and the reserve ratio is generally 50%.