First, the debtor stopped production and business activities from the date of bankruptcy declaration. If it is really necessary to continue production and operation for the benefit of creditors, it must be approved by the people's court.

Second, the bankrupt enterprise loses the right to manage and dispose of its own property from the date of bankruptcy declaration, and all its property is taken over by the liquidation group. The debtor's bank account can only be used by the liquidation group.

Third, the liquidation group should decide to terminate or continue to perform the unfulfilled contract of the bankrupt enterprise.

Fourth, if the property of a bankrupt enterprise is sealed up, seized or frozen in other civil proceedings, the people's court that accepted the bankruptcy case shall immediately notify the people's court that took the measures of sealing up, seizing and freezing to revoke it, and handle the handover procedures with the people's court that accepted the bankruptcy case.

Fifth, after the enterprise is declared bankrupt, the people's court shall designate the necessary left-behind personnel. The legal representative, accountant and property custodian of the bankrupt enterprise must stay.

Sixth, during the period from six months before the court accepted the case to the date of bankruptcy declaration, some legal acts carried out by bankrupt enterprises were invalid, such as concealing, dividing up or transferring property without compensation; Selling property at abnormally low prices; Providing property guarantee for the original debts without property guarantee; Pay off the outstanding debts in advance; Giving up one's creditor's rights and other acts are invalid legal acts.

Extended data

Bankruptcy declaration procedure

First, apply to the court for bankruptcy.

When the company is seriously in arrears with its due debts and cannot pay them off, it will file a bankruptcy application with the court. The applicants for bankruptcy declaration are debtors, creditors and interested third parties.

II. The court accepts the bankruptcy application and notifies the relevant interested parties.

After accepting the bankruptcy application of the company, the court shall notify the debtor and known creditors within 10 days and make an announcement. Creditors who have received the notice shall declare their creditor's rights within 30 days, and provide supporting information and explain whether there is a guarantee. Creditors who have not received the notice shall declare whether there is a secured creditor's right within 3 months. Failure to declare within the prescribed time limit shall be regarded as automatic waiver of creditor's rights.

Three. The court declared the company's bankruptcy application.

After accepting the company's bankruptcy application, the court will examine it and declare the company bankrupt if it finds that it meets the bankruptcy conditions. According to the provisions of the bankruptcy law, the conditions for bankruptcy establishment are: poor management? Serious business and property losses? Unable to pay off due debts on time.

References:

Baidu encyclopedia-declare bankruptcy