How to deal with the liquidation of the company's creditor's rights and debts

Legal analysis: If the company cancels in accordance with legal procedures, it shall set up a liquidation group, make an announcement and clean up the creditor's rights and debts. If the creditor fails to apply for creditor's rights within 45 days after the announcement, it shall be deemed to have given up automatically. Before the cancellation of the company, a liquidation group (composed of the company's shareholders) should be set up to deal with the company's creditor's rights and debts, instead of waiting until the cancellation. If the assets are insolvent, bankruptcy liquidation procedures should be carried out. If the assets are sufficient to pay off the debts, the general liquidation group may pay off the debts with the company's assets and distribute the company's creditor's rights.

Legal basis: Bankruptcy Law of People's Republic of China (PRC).

Article 45 After accepting the bankruptcy application, the people's court shall determine the time limit for creditors to declare their claims. The time limit for filing creditor's rights shall be counted from the date when the people's court announces the acceptance of the bankruptcy application, and the shortest time shall not be less than 30 days and the longest time shall not exceed three months.

Article 46 When the bankruptcy application is accepted, the unexpired creditor's rights shall be deemed to be due.

When the bankruptcy application is accepted, the interest-bearing creditor's rights shall cease to bear interest.

Article 116 After the bankruptcy property distribution plan is approved by the people's court, it shall be executed by the administrator.

If the administrator implements multiple distributions according to the bankruptcy property distribution plan, it shall announce the amount of property and creditor's rights distributed this time. Where the administrator implements the final distribution, it shall indicate it in the announcement and specify the matters specified in the second paragraph of Article 117 of this Law.