I. Understanding bankruptcy liquidation procedures
Bankruptcy liquidation procedure is a legal procedure led by the court, which aims to repay debts by liquidating the assets of the company. In the process of bankruptcy liquidation, the court will appoint a liquidation team or bankruptcy administrator to manage and liquidate the company's property. Creditors may declare their claims to the liquidation group and participate in debt settlement in the order and proportion prescribed by law.
Second, declare creditor's rights and participate in reconciliation.
Creditors shall declare their claims to the liquidation group within the prescribed time limit, and provide relevant evidence materials such as contracts, invoices and debt vouchers. The liquidation group shall confirm and register the creditor's rights according to the creditor's declaration and the evidence provided. After the creditor's rights are confirmed, the creditor will participate in the debt settlement in the order prescribed by law. Generally speaking, the liquidation sequence of bankruptcy liquidation is: first pay bankruptcy expenses and debts, then pay employees' wages and benefits, then pay taxes, and finally pay ordinary creditor's rights.
Third, the company tries its best to repay its debts.
In the process of bankruptcy liquidation, the company will also try its best to repay its debts by liquidating its assets. The liquidation group will evaluate, dispose and distribute the company's assets in order to satisfy the creditors' rights and interests to the maximum extent. If the company's assets are insufficient to pay off all debts, the creditors shall distribute them in the order and proportion of payment.
Fourth, seek legal ways to resolve disputes.
If disputes or disputes arise in the process of bankruptcy liquidation, creditors can solve them through legal channels. For example, you can bring a lawsuit to the court or apply for arbitration to confirm creditor's rights or settle debt disputes.
To sum up:
When the company applies for bankruptcy liquidation, the creditors shall understand the bankruptcy liquidation procedures, declare their claims to the liquidation team in time and participate in the liquidation. At the same time, the company will try its best to repay its debts by liquidating its assets. In the whole process, creditors should abide by the law, actively safeguard their rights and interests, and seek legal ways to resolve disputes.
Legal basis:
Enterprise Bankruptcy Law of the People's Republic of China
Article 107 stipulates:
"After the debtor is declared bankrupt, the debtor is called bankruptcy, the debtor's property is called bankruptcy property, and the creditor's rights enjoyed by the people's court when accepting the bankruptcy application are called bankruptcy creditor's rights."
Enterprise Bankruptcy Law of the People's Republic of China
Article 1 13 stipulates:
"Bankruptcy property shall be paid off in the following order after giving priority to paying off bankruptcy expenses and beneficial debts: (1) The wages, medical care, disability allowance and pension expenses owed by the bankrupt to the employees shall be included in the basic old-age insurance and basic medical insurance expenses of the employees' personal accounts, as well as the compensation that should be paid to the employees according to laws and administrative regulations; (2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph; (3) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. The wages of directors, supervisors and senior managers of bankrupt enterprises shall be calculated according to the average wages of employees of the enterprise. "