Legal analysis: If the company is unable to pay off its due debts, and its assets are insufficient to pay off all debts or obviously lack solvency, the creditor or debtor can only declare bankruptcy after applying to the court for bankruptcy and being ruled by the accepting court according to law. The so-called inability to pay off refers to the objective property situation that the debtor is unable to pay off his debts because of his inability to pay off, also known as inability to pay or inability to pay off.
Legal basis: Article 187 of the Company Law of People's Republic of China (PRC). After clearing up the company's assets, compiling the balance sheet and list of assets, the liquidation group finds that the company's assets are insufficient to pay off debts, and shall apply to the people's court for bankruptcy according to law. After the company is declared bankrupt by the people's court, the liquidation group shall hand over the liquidation affairs to the people's court.