What if the company can't pay its debts?
If a company cannot repay its debts, it can file for bankruptcy. Bankruptcy application refers to the litigation request made by the parties or interested parties to the court to declare the debtor bankrupt to pay off debts. Judging from the bankruptcy laws of various countries, creditors, debtors and quasi-debtors usually include legal person directors, directors of limited companies, unlimited shareholders of unlimited companies, liquidators and so on. The bankruptcy application shall be filed in writing with the competent court. When applying, the applicant shall fulfill the burden of proof prescribed by law and provide necessary evidential materials. If the debtor applies for bankruptcy, the bankruptcy case is called voluntary bankruptcy, and if the creditor applies for bankruptcy, it is called involuntary bankruptcy.
What is the bankruptcy procedure of the company?
Details are as follows:
1. Enter bankruptcy liquidation procedure.
If the company suffers serious losses and cannot pay off its due debts, its creditors or debtors shall file a bankruptcy application with the court where the company is located; The people's court ruled that the enterprise was declared bankrupt according to law, and the enterprise officially entered the bankruptcy procedure.
2. Set up a liquidation team
After the enterprise enters bankruptcy proceedings, the people's court shall set up a liquidation group within 05 days from the date of announcement. The liquidation group is appointed by the people's court and the people's government at the same level, and is composed of lawyers, accountants and other professionals.
3. Take over the bankrupt enterprise in an all-round way
After the liquidation group was formally established and stationed in the bankrupt enterprise, the liquidation group officially replaced the bankrupt enterprise to operate in its own name and took over the bankrupt enterprise in an all-round way.
4. Financial audit of bankrupt enterprises
Auditing the finance of bankrupt enterprises: basic information of bankrupt enterprises, such as company registration, proportion of shareholders and equity, registered capital and location of bankrupt enterprises;
Financial management of bankrupt enterprises: the situation and changes of financial personnel in bankrupt enterprises, the preservation of financial vouchers, account books and accounting records, financial examination and approval, such as the person in charge and expenditure procedures, and the authenticity and integrity of financial account books and original vouchers.
5. Liquidation and liquidation of bankruptcy property
The liquidation of bankrupt enterprise property mainly refers to the activities of the liquidation group to define the ownership, divide the scope and register the bankrupt enterprise property.
6. Formulate the distribution plan of bankruptcy property.
The liquidation group shall propose a scheme for the distribution of bankruptcy property; After the bankruptcy property distribution plan is discussed and approved by the creditors' meeting, it shall be submitted to the court for ruling before implementation; The liquidation group shall make a distribution table within three days after the bankruptcy property distribution plan is confirmed by the court; The liquidation group shall implement the distribution plan and notify the creditors to collect the property within a time limit. If it is not collected within the time limit, it can be deposited. Extra allocation.
7. Prepare bankruptcy liquidation report
Make bankruptcy liquidation report and submit it to creditors' meeting and court. The contents of the bankruptcy liquidation report include: establishing a bankruptcy liquidation group; The main liquidation work completed by the liquidation group; The trend and recovery of bulk funds in bankrupt enterprises: on-the-job audit of legal representatives and managers of bankrupt enterprises; Cause analysis of enterprise bankruptcy; Problems that need to be studied, perfected and solved in bankruptcy liquidation cases.
8. Cancel the registration of the original bankrupt enterprise, request the court to terminate the bankruptcy procedure, and the liquidation group will formally cancel it. Bankruptcy liquidation procedures of bankrupt enterprises have officially ended.