Legal basis: Article 185 of the Company Law. The liquidation group shall notify the creditors within 10 days from the date of its establishment and make an announcement in the newspaper within 60 days. Creditors shall, within 30 days from the date of receiving the notice, and within 45 days from the date of announcement if they have not received the notice, declare their claims to the liquidation group. When a creditor declares its creditor's rights, it shall explain the relevant matters of the creditor's rights and provide supporting materials. The liquidation group shall register the creditor's rights. During the declaration of creditor's rights, the liquidation group shall not pay off the creditors.
Article 186 of the Company Law After clearing up the company's assets, preparing the balance sheet and list of assets, the liquidation group shall formulate a liquidation plan and report it to the shareholders' meeting, the shareholders' meeting or the people's court for confirmation. The remaining assets of the company after paying the liquidation expenses, employees' wages, social insurance expenses and statutory compensation, paying the taxes owed and paying off the company's debts shall be distributed by the limited liability company according to the proportion of shareholders' capital contribution, and by the joint stock limited company according to the proportion of shares held by shareholders. During the liquidation period, the company shall survive, but shall not carry out business activities unrelated to liquidation. The company's property shall not be distributed to shareholders before it is paid off in accordance with the provisions of the preceding paragraph.
Article 187 of the Company Law If the liquidation group finds that the company's assets are insufficient to pay off debts after clearing up the company's assets, compiling the balance sheet and list of assets, it 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.
Article 107 of the Enterprise Bankruptcy Law If the people's court declares the debtor bankrupt according to the provisions of this law, it shall serve it on the debtor and the administrator within five days from the date of ruling, notify the known creditors within ten days from the date of ruling, and make a public announcement. 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 claims.
Article 109 of the Enterprise Bankruptcy Law, a creditor who enjoys a security right over a bankrupt's specific property shall have the priority to be repaid.
Article 110 of the Enterprise Bankruptcy Law If a creditor who enjoys the rights stipulated in Article 109 of this Law fails to fully pay off his priority, his outstanding creditor's rights shall be regarded as ordinary creditor's rights; The creditor's rights shall be regarded as ordinary creditor's rights.