How to bankrupt a company?

Blocking his business source, thus breaking the capital chain; From internal employees to external competitors, external government agencies and units expose some illegal behaviors of the company. If excessive debt leads to bankruptcy of an enterprise, the enterprise may apply for bankruptcy preservation and set up a liquidation group after accepting bankruptcy. According to 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, and its assets are insufficient to pay off all its debts or obviously lack solvency, it shall clear up its debts in accordance with the provisions of this law. An enterprise as a legal person may be reorganized in accordance with the provisions of this law if it has the circumstances specified in the preceding paragraph or obviously loses its solvency.

Article 7 of the Enterprise Bankruptcy Law of the People's Republic of China: Under the circumstances specified in Article 2 of this Law, the debtor may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation. If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor. If an enterprise as a legal person has been dissolved but has not been liquidated or its assets are insufficient to pay off its debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation.

1. Bankruptcy is legal bankruptcy, which refers to the closure of enterprises or shops due to losses. High taxes, recession and other reasons led to the closure of the company. The main reasons for the poor management and decline of enterprises are the unfavorable changes in the overall market demand: intensified competition, high cost structure, insufficient financial control, weak management, failure of large projects, few marketing activities, poor performance and low quality of acquisition business.

2. The so-called bankruptcy means that when all the debtor's assets are not used to pay off the debts due, the creditors make equal compensation for all the debtor's assets through certain procedures, so that the debtor can be exempted from other debts that cannot be paid off. The court declared bankruptcy and dissolution. Bankruptcy refers to a kind of enterprise behavior and economic behavior in most cases. However, people are sometimes used to saying that individuals or companies stop operating, which is also called bankruptcy. Legally speaking, bankruptcy refers to the procedure that the court distributes all the debtor's property in order to protect most creditors and give consideration to the debtor's interests when the debtor is unable to pay off the debts due. Bankruptcy procedure, also known as general execution or general execution, aims to solve the debt settlement relationship between all creditors and debtors in one fell swoop, so it has the nature of liquidation procedure.