1. After the company applies for bankruptcy, it needs to pay off its debts with all its assets;
2. You can apply to the people's court for bankruptcy under the circumstances that your business conditions meet the debts due at the same time and your assets are insufficient to pay off all debts, or you obviously lack solvency;
3. However, it is necessary to provide corresponding evidence. According to the relevant laws and regulations, the court will declare bankruptcy only if it considers that it really meets the bankruptcy conditions after actual examination.
Bankruptcy liquidation procedures for company liquidation:
1, bankruptcy declaration
The bankruptcy declaration shall be served on the debtor and the administrator within five days from the date of ruling by the people's court, and the known creditors shall be notified and announced within ten days from the date of ruling;
2. Bankruptcy property price scheme
The bankruptcy property price change plan shall be drawn up by the administrator and submitted to the creditors' meeting for discussion and adoption;
3. Price changes
Unless otherwise decided by the creditors' meeting, the administrator shall sell the bankrupt property by auction according to the scheme of changing the price of the bankrupt property adopted by the creditors' meeting or ruled by the people's court.
To sum up, if it is necessary to pay off debts when applying for bankruptcy, it shall be borne by all the company's property. According to relevant laws and regulations, after the end of bankruptcy proceedings, the outstanding debts shall be eliminated, and the creditors shall not demand repayment from the debtors.
Legal basis:
Article 43 of the Enterprise Bankruptcy Law
Bankruptcy expenses and beneficial debts shall be paid off with the debtor's property at any time.
If the debtor's property is insufficient to pay off all bankruptcy expenses and debts, the bankruptcy expenses shall be paid off first.
If the debtor's property is insufficient to pay off all bankruptcy expenses or beneficial debts, it shall be paid off in proportion.
If the debtor's property is insufficient to pay off the bankruptcy expenses, the administrator shall request the people's court to terminate the bankruptcy proceedings. The people's court shall, within 15 days from the date of receiving the request, make a ruling to terminate the bankruptcy proceedings and make an announcement.