Bankruptcy liquidation in company law refers to a legal system dealing with how to pay off debts in the case of economic bankruptcy, that is, when the debtor loses solvency, the court will enforce all his property and pay off all creditors fairly. The concept of bankruptcy refers to the bankruptcy liquidation system, that is, the legal system of declaring bankruptcy and paying off debts to debtors. When a company applies for bankruptcy, it should generally repay the bank loan first, and the bankrupt property will pay the workers' wages after paying off the bankruptcy expenses and debts first. For bank loans, under normal circumstances, the company's property has been mortgaged, and the bank has the priority to be compensated for the mortgaged property. These mortgaged properties are not bankrupt property, and the proceeds from the auction of mortgaged properties by the court are also given priority to banks with mortgages. The remaining property belongs to bankruptcy property, and then it is distributed according to the provisions of the Enterprise Bankruptcy Law of the People's Republic of China. Of course, if the bank loan is unsecured, it is an ordinary bankruptcy claim, and the wages of workers must be paid before the bank loan is paid off.