1, the company is unable to pay off its debts.
Insolvency refers to the objective property situation that the debtor can't repay due to the loss of solvency, also known as inability to pay or inability to pay.
The elements that cannot be paid off are:
First, the debtor is insolvent.
Second, what the debtor can't pay off is the debt that has reached the repayment deadline, and has put forward the repayment request, which is not controversial or has a clear name.
Third, debt is not limited to monetary payment, but it must be a debt that can be evaluated in money. Otherwise, it is meaningless to declare the debtor bankrupt, because its debt form cannot be repaid in bankruptcy proceedings.
Fourth, non-payment means that the debtor can't pay off for a long time or in the foreseeable period, rather than temporarily stopping payment because of temporary capital turnover difficulties.
Fifth, insolvency refers to the objective property status of the debtor, which should be decided by the court according to the law and facts, rather than its subjective understanding or expression.
2. The company is insolvent or obviously lacks solvency. The so-called insolvency means that the debtor's liabilities exceed the actual assets.
Legal basis: Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China. If an enterprise as a legal person is unable to pay off its debts due, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear up its debts in accordance with the provisions of this Law.